Wholesale gas and electricity prices have dropped steadily from Friday through Tuesday which is good news, given the headwind for increased standing charges. Some of which have already been imposed, and others of which are coming in the next few months.

Gas: Gas prices fell yesterday amid Ukraine-Russian peace talks, as the sanctions against Russia would be removed if an agreement was reached between the two nations, which also impacts the oil markets.   Power: Power prices tracked the wider energy mix and softened yesterday. In the prompt there was some resistance as wind production is expected to fall to 8.2GWs/day for the remainder of the week, well below average for this time of year. Curve contracts were rebounding from the previous day’s losses in the morning before news of the potential peace deal, which limited further gains.   Oil: Oil prices fell yesterday as Ukraine signalled support to the framework of a peace deal with Russia. An end to the war would lead to the untying of sanctions on Russia. This comes when there’s already a surplus of oil, driving prices down further.   Carbon (EU ETS): The ICE Dec-25 closed upwards at €81.87/t yesterday. The contract opened today at €82.02/t.   Carbon (UKAs): The ICE Dec-25 rose to £58.26/t yesterday. Opening this morning at £58.69/t.

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