12th December 2025 Energy Price Alert – UK Gas & UK Electricity
Wholesale gas and electricity prices rose marginally on Thursday, but still remain very low with very flat curves. Importantly electricity, both April and October contract starts, remain below £70/MWh. Gas is firmly in the mid 60p/therm range, for both start dates.
At retail we are seeing some softening in overall prices, as the non-commodity costs increases have now been outweighed by the wholesale price reductions of recent weeks. This is good news.
On the generation side; last week saw electricity generation at £67.72/MWh which is markedly down on recent weeks, when it peaked as high as £85/MWh. Winter is always difficult but essentially the more wind there is the better it is, and last week wind was over 50% of generation with fossil fuels below 20%.
Gas: Gas prices were bullish yesterday. In the prompt, Europe expects mild temperatures but only average wind generation, which concerns traders due to potentially volatile CCGT demand. Curve prices tracked the prompt, despite the bearish sentiment of lower demand in the Asian LNG market, leaving Europe with ample supplies throughout January.
Power: Power prices rose yesterday. In the prompt, a low wind output and a lower revision in forecasted temperatures for next week saw prices climb. Curve prices were supported by gains in the Carbon and Gas markets.
Oil: Oil prices fell yesterday as the market looked towards Ukraine and Russian negotiations and a building surplus in American gasoline and diesel inventories.
Carbon (EUAs): The ICE Dec-25 rose to €83.90/t yesterday. The contract opened higher today at €84.09/t.
Carbon (UKAs): The ICE Dec-25 rebounded up to £56.08/t yesterday. The contract opened at £55.90/t today.
