27th November 2025 Energy Price Alert – UK Gas & UK Electricity
Wholesale gas and electricity prices continued to drop on Wednesday. These sustained drops are now being driven by the prospect of peace in Ukraine which would lead to the lifting of sanctions on Russia, and therefore an influx of cheap gas which remains our dominant source of energy generation.
In the past month both wholesale gas and electricity prices have dropped by over 6%, which is highly irregular for this time of year.
Gas: Gas prices continued to soften yesterday. Prompt contracts fell following ample supplies of LNG, with the UK expecting two cargoes by the end of November. Curve contracts softened, tracking the Ukraine and Russian peace progress. Strong US LNG supplies and a weak Asian demand is seeing Europe benefit from plenty of LNG supplies.
Power: Power prices fell yesterday, shadowing the gas market. A spike in the front month due to fears of colder weather provided resistance to bearishness. However wind generation is expected to output above average next week, limiting the impact of the concern.
Oil: Oil prices edged upwards yesterday as investors waited on firmer signals of market direction. Prices rebounded from one-month lows after assessing the possibility of an oversupplied market and progress in the peace negotiations between Ukraine and Russia.
Carbon (EU ETS): The ICE Dec-25 closed downwards to €81.68/t yesterday. The contract opened today at €81.68/t.
Carbon (UKAs): The ICE Dec-25 fell to £57.80/t yesterday. Opening this morning at £57.40/t.
