10th January 2024 Energy Price Alert – UK Gas & UK Electricity

The gas and electricity markets continued to fall as expected, and while at the moment the decreases are quite significant we expect this to stabilise (albeit continuing a downward trend).

If you have a domestic tariff our recommendation is to switch to Octopus’ tracker products, which are available for both gas and electricity, as these immediately reflect the market drops.

Gas: Gas prices continued to fall yesterday. A healthy supply of LNG and flows from Norway has eased pressure on the near curve with the expected increase in heating demand due to the cold snap, which has yet to materialise. Temperatures are predicted to vary between 1-3°C lower than seasonal norms.
Power:  Power prices also fell yesterday, continuing to be mainly influenced by the Gas market. The far curve of the power market also fell as Carbon contracts fell 2.5%. Pressure is rising in the prompt as Wind Generation for the remainder of week 2 is forecast to output 20% below average. 
Oil: Oil prices rallied yesterday as political protests in Libya continued, reducing production and major shipping companies are still avoiding the Red Sea due to the conflict with Houthi militants.
Carbon (EU ETS): The ICE Dec-24 fell to €71.94/t yesterday. Opening at €72.09 /t this morning, the contract has continued its bearish run and is trading at €70.77/t. 
Carbon (UKAs): The ICE Dec-24 fell back below the £40 barrier since Dec 19th, to £39.68/t yesterday. The contract is currently trading at £39.65/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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