Wholesale Gas and Electricity prices started the week with a drop with Winter ’24 and ’25 both now below 80p/thm, and approaching £70/MWh for electricity.
Wholesale Gas and Electricity prices have dropped over 20% in the past two months and the curve going forward up to five years is flat, with a range of 3p/thm and £2/MWh across the 1-5 year periods for renewal in April ’24. This is leading less scrupulous brokers to encourage businesses to contract up to three years out, which is contrary to our recommendation of either short term or flex contracts.
| Gas: NBP contracts fell yesterday as bearish fundamentals took control over last week’s volatility. Nominations from Easington remain strong, despite Norwegian outages. Wind output is expected to rise 8.8GW between the 11th and 13th March, weighing on the prompt. Power: Power prices fell during yesterday’s session, tracking NBP losses. Wind production is forecast strong throughout the remainder of the week. Week 11 is expected to bring milder temperatures, pressuring heating demand. Oil: Tensions in the Middle East were offset by slow demand from China, with January and February demand being below 4 out of 5 of the previous months. Economic concerns out of America added further downside. Carbon (EU ETS): The ICE Dec-24 closed at €56.21/t yesterday. The contract has shed further value and is currently trading at €55.85/t, at the time of writing. Carbon (UKAs): The ICE Dec-24 fell to £34.87/t yesterday. The contract has gained value this morning, currently trading at £35.25/t. |
#gas #electricity #businessutilities #businessgas #businesselectricity
