Wholesale Gas and Electricity prices continued their upward trajectory on Tuesday, as we now go in to Winter and experience more weather volatility.

Gas: Gas prices rose yesterday with temperatures predicted to fall as we get deeper into winter, leading to additional demand for heating. Wind generation is expected to return to average 11.6GWs/day next week but is currently under performing at 4.2GWs/day this week, leading to increased demand for gas fired generation in the day ahead. The UK expects to receive four LNG cargoes by the end of November, but the recent higher prices may attract more LNG over the next few months.   Power: Power prices rose yesterday, continuing to track the gas market. Sizewell B nuclear reactors 1 & 2 remain offline for outages, which combine for 1.25GWs, with their expected return at the end of November. Ofgem have approved five new undersea energy links with a capacity of 6GWs – three interconnectors and two offshore hybrid assets, due for completion in 2032.   Oil: Oil prices were volatile yesterday as OPEC revised down their global growth demand forecasts with weaker economic data from China and India as the reason.   Carbon (EU ETS): The ICE Dec-24 closed at €67.53/t yesterday. The contract is currently trading at €66.05/t.   Carbon (UKAs): The ICE Dec-24 closed to £38.46/t last night. The contract is currently trading lower at £37.75/t this morning.

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