14th February 2024 Energy Price Alert – UK Gas & UK Electricity

Prices continued to drop on Tuesday and are now at levels not seen since 2021. The wholesale market is still, however, around 3 times the price that it was in 2019.

Those who followed our advice, only to commit to short term contracts, over the past 18 months, have benefited hugely and will continue to do so on renewals coming up this calendar year.

As we expect gas and electricity prices continued to drop, our advice remains to stick with one year contracts at a maximum.
Gas: Gas prices continued their decline yesterday due to mild temperatures, reduced seasonal gas demand and high Norwegian flows keeping supplies ample. Day ahead price losses were limited as wind output is forecasted to fall in the prompt, leading to an increased demand for gas-fired generation. 

Power: Power prices fell yesterday, continuing to track the underlying gas market. Losses were limited due to the gains in the carbon market. 

Oil: Oil prices rose yesterday as conflict in the Middle East continue to support traders concerns surrounding supply disruptions.

Carbon (EU ETS): The ICE Dec-24 contract closed at €56.64/t yesterday. The contract is currently trading down at €55.48/t.

Carbon (UKAs): The ICE Dec-24 rose to £35.3/t yesterday. Opening lower this morning, the contract is currently trading at £35.25/t.

#gas #electricity #businessutilities #businessgas #businesselectricity
The Procurement Group

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