Wholesale Gas and Electricity prices continued to fall on Wednesday which was welcome news given the rises of recent weeks.

There is now clear demarcation between 1 year, 2 year and 3 year pricing, which has not been the case for quite some time. The reductions were heavier on contracts up to and including Winter ’25, which corresponds with those contracts which had seen the highest gains in recent weeks.

TPG continue to believe that prices will soften during the Summer.

Gas: Weather fundamentals weighed on prices yesterday, with NBP encountering further losses. Further pressure was added with news that the unplanned outage at Barrow gas treatment plant was set to end.   Power: Prices fell yesterday, largely tracking NBP movements. Above average wind forecasts over the coming fortnight are expected to limit gas for power demand. A planned outage in the IFA1 interconnector to France starting 21 February is expected to have little impact.   Oil: Crude prices ticked upwards yesterday as tensions in negotiations did little to encourage confidence in a quick peace deal between Russia & Ukraine. Recent cold weather in the US has caused disruption to supply, further strengthening price. However, the 2nd stage of the ceasefire deal in the Middle East capped any price rises.   Carbon (EU ETS): The ICE Dec-25 fell further yesterday, closing at €74.02/t. The contract is trading lower at €73.16/t this morning.   Carbon (UKAs): The ICE Dec-25 fell to £42.96/t yesterday. The contract is trading lower again at £41.28/t at the time of writing.

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