Monday 9 March 2015

Otmane El Rhazi : Changes in natural gas spot prices may not quickly translate to consumer prices

Otmane El Rhazi from Today in Energy.



While natural gas wholesale spot prices have dropped to relatively low levels since the end of 2014, these low prices have not translated directly into lower retail prices for consumers who use natural gas to heat their homes and businesses. This short-term lag is largely due to the nature of utility regulation. Over longer periods, changes in natural gas spot and residential prices are much more closely correlated.

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