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

Wholesale gas & electricity prices continued to drop on Friday which was a welcome end to a good week, with consistent price decreases throughout.

While prices are not back to levels seen at the end of February they are heading back down and have more than halved the gap that was there in the middle of May.

TPG do not expect to see further sustained rises, with the likelihood of stable pricing or small drops

Gas: Gas prices fell last Friday following a combination of factors. Firstly, repairs on the Norwegian continental shelf, and secondly, renewable generation forecasts expecting to perform better than average at 12.6GWs for wind, which limited demand for gas and increased supplies.

Power: Power prices fell at the conclusion of last week, continuing to track underlying gas market movements. The Heysham 2 nuclear reactor is increasing output before its planned outage for maintenance, decreasing demand for gas-fired generation in the prompt.

Oil: Oil prices increased last Friday, as Saudi Arabia and Russia settled market concerns of over-supply. If the oil market started to become over-supplied due to a lack of global demand, Saudi Arabia and Russia announced that they would pause or revert back to supply cuts.

Carbon (EU ETS): The ICE Dec-24 fell to €71.39/t last Friday. The contract is currently trading at €70.30 at the time of writing.

Carbon (UKAs): The ICE Dec-24 continued its bullish run and settled at £47.44/t at the end of last week. The contract has softened so far this morning, currently trading at £46.6/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

Join us...

and 2000+ other CFOs and FDs who are already enjoying our free resources and industry insights.