LONDON, April 2 - Britain's recession is likely to cut gas demand by 6 percent during the six months started on Wednesday, compared to the previous summer, energy network operation National Grid said.
"The impact of the recession is anticipated to reduce non daily metered demand. We have assumed this reduction to be 6 percent, in line with our winter experience," the National Grid said a report released late on Wednesday.
Referring to electricity, the company said: "We anticipate continued recession impacts through the summer with demand on average reduced by 1.1 GWs."
The official summer began on April 1 and lasts until the end of September. The official winter starts on October 1 and closes at end-March.
Looking into fuel for power generation, the company said forward prices for coal and gas suggested there was little to choose between the two.
Operational limits on some coal plants due to environmental rules could favour gas, though the choice would remain marginal.
Data from the National Grid showed over the past several weeks gas accounted for about 40 percent of the country's power generation, due to rapid falls in its relative prices to coal. Earlier this year the share had been around 30 percent. The share of coal fell to 30-35 percent from around 50 percent.
"We are confident that demand will be met in all but exceptional circumstances," it said on gas, adding summer gas demand levels were typically half of those of the winter.
A moderate decline in gas output from UK Continental Shelf would be offset by supply from Norway and possibly LNG where commissioning volumes for the country's new Milford Haven terminal were expected in the near future, it said.
"The impact of the recession is anticipated to reduce non daily metered demand. We have assumed this reduction to be 6 percent, in line with our winter experience," the National Grid said a report released late on Wednesday.
Referring to electricity, the company said: "We anticipate continued recession impacts through the summer with demand on average reduced by 1.1 GWs."
The official summer began on April 1 and lasts until the end of September. The official winter starts on October 1 and closes at end-March.
Looking into fuel for power generation, the company said forward prices for coal and gas suggested there was little to choose between the two.
Operational limits on some coal plants due to environmental rules could favour gas, though the choice would remain marginal.
Data from the National Grid showed over the past several weeks gas accounted for about 40 percent of the country's power generation, due to rapid falls in its relative prices to coal. Earlier this year the share had been around 30 percent. The share of coal fell to 30-35 percent from around 50 percent.
"We are confident that demand will be met in all but exceptional circumstances," it said on gas, adding summer gas demand levels were typically half of those of the winter.
A moderate decline in gas output from UK Continental Shelf would be offset by supply from Norway and possibly LNG where commissioning volumes for the country's new Milford Haven terminal were expected in the near future, it said.
