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

Wholesale prices were higher yesterday, noticeably on nearer term price periods which is not an issue on longer term contracts.  It just removes some of the delta between day ahead prices and longer terms.

At retail, prices remain competitive vs what they were 6 months agoDaily alert – energy markets.

Our recommendation remains 1 year contracts but for those wanting certainty on budgets 2 year deals are not unattractive.
Gas: Gas prices strengthened across most of the curve yesterday. Prompt prices rose due to a combination of Britain exporting on the Dutch BBL Pipeline, below average wind generation and extended outages in Norway, increasing demand. 
Power: Power prices rose yesterday, tracking the Gas market. The 500MW interconnector between the UK and Ireland is set for commence unplanned full capacity outage today. Nuclear reactor Hartlepool 2 is due to return online at the end of this month. 
Crude: Oil prices continue to be volatile with OPEC+ continuing production cuts until the end of the year. The $USD fell ahead of the release of CPI release on Wednesday. If CPI levels remain high, the US Federal Reserve may increase interest rates. 

Carbon (EU ETS): The ICE Dec-23 rose to €81.65/t yesterday. Opening higher today at €81.82/t today, the contract has fell slightly to €81.60/t at the time of writing.  
Carbon (UKAs): The ICE Dec-23 fell to £40.45/t yesterday. Opening at £40.00/t flat, the contract is currently trading at £40.2/t.  
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