1st May 2026 Energy Price Alert – UK Gas & UK Electricity
Despite the unpredictability we are currently seeing in the wholesale gas and electricity markets, both product areas saw slight drops on Thursday. This could be attributed to the current warmer weather, which is closer to what we would expect as we emerge from Winter.
Nevertheless, TPG’s advice remains to avoid locking-in to possibly inflated long-term contracts where avoidable, as we would hope reductions will continue as we head towards Summer.
On the Generation front prices have fallen to £90.31/MWh since our last update on 27th March, where we saw rates of £101.90/MWh.
At 40.7% renewables are still showing up as the main driver, whereas fossil fuels’ contributions have decreased to 15.7%.
Gas: Gas contracts fell in the last session of April despite ongoing uncertainty in the Middle East. Bearish weather fundamentals offset the beginning of the Norwegian maintenance periods.
Power: Power prices fell yesterday as the last day of trading saw traders selling off their heightened positions. Curve prices tracked the losses in the gas and oil markets.
Oil: Oil prices eased yesterday after hitting a four-year high of $126/barrel in the morning of yesterday’s session. This had followed concerns of the US/Iran war extending disruptions in the Middle East supply chain, inflicting deeper damage on the global economy. But the prices fell by 3.5% in the afternoon as the prompt contract expired and traders sold off their positions.
Carbon (EUAs): The ICE Dec-26 traded to €73.79/t yesterday. The contract opened this morning at €73.67/t.
Carbon (UKAs): The ICE Dec-26 settled at £49.51/t last night, opening this morning at £49.14/t.
