11th October 2024 Energy Price Alert – UK Gas & UK Electricity
Wholesale Gas and Electricity prices rose markedly on Thursday and wiped out the reductions of previous days.
Given everything going on in the world at the moment this level of volatility is to be expected, but it is frustrating.
At a retail level, prices have moved up in the past week by between 0.5/kWh and 1p/kWh.
On the generation front, the price increased last week to £78.13/MWh, even though renewables were 40% of generated volume.
Gas: Gas prices rose yesterday, tracking the bullishness of the carbon markets. Gas demand increased in the prompt, due to a decline in wind generation and increasing heating demand caused by cooling temperatures.
Power: Power prices increased yesterday with support from the wider energy complex, namely carbon in the further out contracts and gas in the front curve. Wind generated below the forecasted levels, increasing gas demand in the prompt.
Oil: Oil prices rebounded yesterday as traders took advantage of Wednesday’s price fall. Concerns around the impact of Hurricane Milton on supply chains lifted prices further.
Carbon (EU ETS): The ICE Dec-24 rose to €65.00/t yesterday. The contract is currently trading at €64.66/t after opening at €64.78/t.
Carbon (UKAs): The ICE Dec-24 rose to £38.07/t yesterday. The contract has yet to trade at the time of writing.
