Wholesale Gas and Electricity prices continued to soften on Monday, albeit not at the rates seen towards the end of last week.

For the right business we are now seeing retail contracts for 2026 start dates coming through at below 18p/kWh, which supports TPG’s belief that prices will drop this Summer, and that no contracts should be signed for more than 12 months in length.

Gas: Nearer term prices continued their descent yesterday. Revisions in wind outputs still left generation sitting below seasonal norms, with air temperatures forecast between 1°C – 3°C higher than seasonal average. Increased flows into Easington and below seasonal demand added market pressure. Three LNG cargoes are expected later this week whilst demand is also expected to increase.   Power: There were small movements in power prices throughout yesterday’s session. Strong solar production and warmer temperatures pressured prices. Further out on the curve, falling benchmark UKA prices squeezed some contracts.  This morning, early trading was up on last nights close.   Oil: Prices fell by the culmination of yesterday’s session. Tariff fears are still dominating market sentiment with fears of lower demand. Expectations of an increase in May production by OPEC+ drive fears of an over supplied market.   Carbon (EU ETS): The ICE Dec-25 closed at €62.84/t last night. The contract is currently trading at €61.99/t at the time of writing.   Carbon (UKAs): The ICE Dec-25 fell to £41.79/t yesterday. The contract is trading similar this morning, currently at £41.42/t.

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