Weekly UK NBP natural gas prices 2023-2024
Natural gas prices in the UK increased going into the winter months, with the National Balancing Point (NBP) futures reaching 119.82 British pence per therm on December 30, 2024, for contracts with February 2024 delivery. This price level represents one of the highest points in 2024, reflecting greater demand for gas heating. The UK NBP, along with the Dutch TTF, serves as a crucial benchmark for natural gas prices in Europe.
Impact on consumer prices and household expenditure post-2022
Fluctuations in wholesale natural gas prices often have immediate impacts on UK consumers. In 2023, the consumer price index for gas in the UK rose to 195 index points, using 2015 as the base year. This increase has translated into higher household expenditure on gas, which reached approximately 24.89 billion British pounds in 2023. This figure represents a 23 percent increase from the previous year and a staggering 91 percent rise compared to two years earlier, highlighting the growing financial burden on UK households.
Consumption patterns and supply challenges
The residential and commercial sector remain the largest consumers of natural gas in the UK, using an estimated 40.7 billion cubic meters in 2023. This was followed by the power sector, which consumed about 15 billion cubic meters. The UK's reliance on gas imports has grown due to declining domestic production. This shift has led to an increased dependence on liquefied natural gas imports and pipeline inflows to meet demand.