Wholesale gas and electricity prices continued to drop on Wednesday as the market fundamentals continued to play out.

TPG’s view remains that there is still the potential for drops of up to 10% for electricity prices, at retail during 2025.

Gas: Prices fell yesterday. Withdrawals from storage helped to balance the grid amid strong demand. Despite an upwards revision in wind power next week, high gas for power generation is still expected. Power: Power prices continued to decline during yesterday’s session, with the prompt tracking NBP movements. NESO announced a capacity market notice early yesterday with cold and still weather, limiting renewable generation, causing supply margins to fall below threshold. The notice was later cancelled. Oil: Markets dipped during yesterday’s trading. The USD reached a new high during trading, limiting the impact of tight supply due to production dips. As the Trump administration enters the White House, markets speculate the trajectory of the USD and what that could mean for Crude prices. Carbon (EU ETS): The ICE Dec-25 softened yesterday at €72.17/t. The contract is currently trading at €71.92/t this morning. Carbon (UKAs): The ICE Dec-25 fell to £34.54/t yesterday. The contract is trading at £34.07/t at the time of writing.

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