23rd January 2026 Energy Price Alert – UK Gas & UK Electricity
Wholesale gas and electricity prices saw drops on Thursday, in both the immediate term and for April and October contract starts.
On the generation side the past week saw the generation cost at a slightly higher level than the week before, at £98.35/MWh. Renewables were once again the driving factor this past week at 37.9%, closely followed by fossil fuels at 35.6%.
Gas: Gas prices shed value across all contracts yesterday. Prompt prices lost value as forecasts of above average temperatures and increased wind generation pressured demand for Gas. Curve prices were also influenced by an easing of geopolitical tensions around Greenland, US tariffs and progress in peace talks between Ukraine and Russia, decreasing the risk premiums.
Power: Power prices fell yesterday. In the prompt, a high wind output of 13.5GWs/day over the weekend and an average of 10.9GWs/day over week 5 softened prices. Curve prices fell, tracking the Gas and Oil markets.
Oil: Oil prices slid 2% yesterday after President Trump softened his threats towards Greenland and Iran. The US secured access to Greenland in a deal with NATO, however the threat has shaken the confidence of the transatlantic relationship between the US and Europe. President Trump also announced that he had “hoped” of no further military action in Iran but would act if Iran resumes its nuclear program.
Carbon (EUAs): The ICE Dec-26 rose to €88.47/t yesterday. The contract has opened at €88.31/t this morning.
Carbon (UKAs): The ICE Dec-26 continued its recovery yesterday and rose to £68.76/t. Opening higher this morning, the contract opened at £68.87/t.
