Weekly Market Updates

Severe drought declared in parts of England. For the first time since 1995, the government has stepped up emergency planning as reservoir levels fall far below seasonal norms, with some reaching critically low levels and threatening public water supplies. On Thursday, the government moved areas of Cornwall, Devon, Dorset, Somerset, East Sussex and West Sussex into the highest drought category, after the UK experienced its hottest summer on record. Emma Hardy, the water minister said: “This level of drought is something we have not experienced for decades, so this government is stepping up our support and planning. Two reservoirs are at critically low levels, with Ardingly at 19% capacity and Wimbleball at 16%, well below the Environment Agency’s expected 75% for this time of year, raising concerns over water supplies across southern and south-west England. The south-east and south-west of England have experienced their driest April-to-September period in more than a century, driven by the climate crisis and contributing to critically low reservoir levels. This adds to already low river levels and hydro stocks across Europe, highlighting potential supply challenges heading into next summer.