13th February 2024 Energy Price Alert – UK Gas & UK Electricity

Wholesale Gas and Electricity prices continue to drop at an increasing rate. The key Winter ’24 and Winter ’25 markers are both now below 80p/thm.

We expect the situation to continue as stocks are good, and at present there are no particular limits on supplies. Pricing will become volatile during any cold snap.

We are now confidently predicting retail prices to be below 20p/kWh for Electricity during the course of this year.

Gas: Gas prices fell yesterday amidst ample supplies from Norway and a reduced forecast in likely demand for the summer. 
Power: Power prices softened yesterday, tracking the underlying carbon and gas markets. Unplanned outages at Hartlepool Reactor 1 have been extended, limiting further downside. 
Oil: Oil prices rose slightly yesterday continuing the rally from Israel’s rejection of Hamas’ proposed ceasefire. Gains were limited as investors looked to take their profits and sold off their investments. 
Carbon (EU ETS): The ICE Dec-24 contract closed at €56.89/t yesterday. The contract is currently trading down at €56.5/t.  
Carbon (UKAs): The ICE Dec-24 fell to £34.47/t yesterday. Opening lower this morning, the contract is currently trading at £33.89/t. 

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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