Wholesale gas and electricity prices continued the drops of recent days on Tuesday, which was welcome news.
There is now a clear curve developing between 1, 2 & 3-year prices, whereas as recently as 3 months ago there was virtually none. This gives you the ability to lock in for longer terms at competitive rates if that is what’s right for your business.
Our view remains that prices will drop further, albeit modestly, in the short term. The challenge at a retail level is knowing how much of the reductions have already been built in.
| Gas: Gas prices fell yesterday, as weather fundamentals gripped the market. In the prompt, demand forecasts fell to 142.56mcm/day, below seasonal average. Average temperatures and wind forecasts are above norm, further suppressing demand. The curve was dragged down by the prompt. Power: Power prices softened yesterday. Wind generation is expected to average 9.8GWs/day this week, well above the norm. Prices were supported by the ongoing outage at the 620MW Hartlepool reactor 1, which was extended by 13 days, to 5 July. The UK government has announced a further £14.2billion of additional funding to build Sizewell C nuclear plant. Oil: Oil prices softened yesterday after trade talks between the US and China encouraged investors to take advantage of some profit taking, as prices reached their highest price since April during the day. Carbon (EU ETS): The ICE Dec-25 fell to €72.66/t yesterday, erasing the gains from the previous week. The contract opened at €73.00/t this morning and is currently trading at €73.87/t. Carbon (UKAs): The ICE Dec-25 closed yesterday at £51.79/t. The contract has not yet started trading at the time of writing. |
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