12th January 2024 Energy Price Alert – UK Gas & UK Electricity

Both gas and electricity resumed their downward trajectory on Thursday.

For volume business with good credit we are seeing prices around 20p/kwh for electric and in the 5p/kwh range for gas.

At some point these reductions will stabilise, but we do expect them to run for a few weeks longer and then pick up again in the Spring.

In terms of generation, even though renewables were at only at 27.9%, the downward pressure is continuing because of the soft gas prices. Fossil fuels as a total accounted for 51.4% of production, but 49.9% of the total production was from gas hence the softening of both wholesale and retail prices.

Do not get tricked in to signing long term contracts by brokers who are simply interested in their commission. The prudent thing to do at the moment is to take short term contracts and regularly resign.

Gas: Gas prices continue to fall yesterday as it is expected that Wind generation and Temperatures will both increase above seasonal norms by week 4, decreasing Gas demand in the prompt. 
Power:  Power prices also continued to fall yesterday, following declines in the Gas and Carbon markets. The UK expect 10 LNG cargoes by the 21st of January, keeping supplies healthy. The UK Government announced plans to explore building a new large scale nuclear plant yesterday, ensuring power security. 

Oil: Oil prices rose yesterday as more conflict in the Middle East worried investors. Reports of Iran seizing an oil tanker from the US in the Red Sea has raised concerns and encourages cargoes to go around South Africa. 
Carbon (EU ETS): The ICE Dec-24 fell to €67.92/t yesterday. Opening at €67.8 /t this morning, the contract is now trading at €67.88/t. 
Carbon (UKAs): The ICE Dec-24 continued to decline to £36.92/t yesterday. The contract is currently trading at £36.45/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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