Gas traders start giving it away - UK

[DoYouEverWonder]

3 October 2006

A glut of natural gas supplies in Britain has seen prices collapse and left traders having to pay for it to be taken off their hands.

Wholesale spot gas prices turned negative on Tuesday as supplies surged in from the new Langeled pipeline from Norway and mild weather reduced demand.

Britain's gas storage capacity is 96% full so firms need to offload supplies.

Because domestic gas bills are based on longer-term forward prices, consumers will have to wait for big reductions.

http://news.bbc.co.uk/2/hi/business/5402370.stm

[dipsydoodle]

1. Thanks for that

which I otherwise may have missed. I'd thought there was something odd going on when the UK supply companies came up with deals promising no price increases in return for longer contracts and subsequent price reductions later in 2007. They must have been aware of this at least 6 months ago. Bastards !

[DoYouEverWonder]

2. They buried it

down in the business section.

:hi:

[muriel_volestrangler]

3. The BBC did actually make this part of their 3 minute bulletin

on the radio - I started looking for it but they hadn't put it on the net yet. It's now in the "Other Top Stories" of thier UK website, so they're not really burying it.

[Pharaoh]

4. Because domestic gas bills

are based on longer-term forward prices, consumers will have to wait for big reductions"


well that's about par for the course............there certainly is'nt any lag when prices are going up!