12th December 2023 Energy Price Alert – UK Gas & UK Electricity

Prices have continued to drop significantly on Monday, following the significant reductions on Friday. It is worth noting that all electricity periods, including W-24, are now trading below £100 per MWh for the first time in over 6 months.

For Gas, only W-24 and W-25 remain above 100p per therm.

We expect continued price drops at retail, in the coming weeks, which is very novel for this time of year.

Gas: Gas prices fell yesterday following the revisions to Wind generation in the prompt, dragging the curve downwards. The UK expects to receive eight LNG cargoes by the 17th of December, limiting any supply concerns. 

Power: Power prices tracked the Gas market yesterday as Wind generation revised forecasts increased by 1.7GWs to 15.4GWs a day this week, and 12.7GGWs next week, which is more in line with seasonal norms. Temperatures are also above seasonal norms, limiting heating demand. 

Oil: Oil prices remained uncertain yesterday as weak global demand conflicted with OPEC+’s indecision as a group. OPEC+ agreed to a 2.2m bb/day production cut but members in Africa and Brazil want to increase output. Chinese economic data suggests the country is entering deflation as consumer prices have fallen for the third month in a row.

Carbon (EU ETS): The ICE Dec-23 fell to €67.28/t on Friday. Opening at €67.48/t this morning, the contract is currently trading at €67.19/t. 

Carbon (UKAs): The ICE Dec-23 rose to £33.27/t yesterday, rebounding slightly from the multi-year low on Friday. The contract is currently trading at £33.44/t. 

The Procurement Group

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