Wholesale Gas and Electricity prices continued to drop on Wednesday, with Electricity Baseload now below £70/MWh and Gas approaching 70p/Therm. The curves have almost disappeared with 1 and 2 year prices being almost identical, and 3 year prices still representing slight savings. The challenge though, is that whilst that’s the case as far as the commodity prices are concerned, non-commodity costs are rising at an alarming rate, hence the significant wholesale price reductions seen in the last few months are not fully reflected in retail prices.

Gas: Prices fell yesterday. In the prompt contracts were pressured by strong wind output and mild temperatures. British medium range storage sits at 68% capacity, an expected, healthy supply of LNG over the rest of this week will enable further injections.  Power: Power prices fell yesterday, tracking movements in NBP contracts. Wind output for next week had an upwards revision, now c.16GW. Early trading this morning is up on last night’s closing price. Oil: Oil prices settled lower yesterday amid concerns of oversupply. Inventory data from the EIA helped limit losses, showing a larger than expected decline in crude. Carbon (EUAs): The ICE Dec-25 fell to €82.42/t yesterday. The contract opened higher today at €83.14/t   Carbon (UKAs): The ICE Dec-25 closed at £55.66/t yesterday. The contract opened at £55.95/t today.

#gas #electricity #businessutilities #businessgas #businesselectricity