On Thursday, wholesale gas and electricity prices dropped back and look set to end the week at a lower level than where they started, subject to any fallout from the Trump/Putin meeting.
At a retail level, we continue to see pricing below 20p per kWh for all-day electricity rates, and around 16–17p for night rates. Gas is possibly available at 4p per kWh, but generally sits between 4 and 4.5p per kWh.
On the generation side, prices rose last week to £76.72 per MWh, driven by fossil fuels making up over 30% of total generation. With renewables, solar is nowhere near the volume of wind – even with clear blue skies and plenty of sunshine.
| Gas: Gas prices fell across all contracts yesterday. Prices in the prompt fell despite rising temperatures, leading to an increased demand for gas and cooling. EU Storage inventory has reached 72.5%, alleviating any demand expectations for the remainders of summer injections. Power: Power prices continued to track the wider energy complex and fell yesterday. EDF’s 660MW Heysham 2 is gearing up production following a planned outage for refuelling on 20 August. Oil: Oil prices rose yesterday. Optimism surrounding a US interest rate cut next month led to the assumption of an increased demand for oil. Prices were also supported by the looming meeting of the US and Russia in Alaska, with President Trump warning of “severe consequences” if the peace talks failed. Carbon (EU ETS): The ICE Dec-25 fell to €70.96/t yesterday. The contract opened at €71.03/t this morning and is currently trading at €71.05/t. Carbon (UKAs): The ICE Dec-25 settled at £51.15/t yesterday. The contract opened at £51.00/t and is trading at this level at the time of writing. |
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