15th January 2025 Energy Price Alert – UK Gas & UK Electricity
Wholesale Gas and Electricity prices eased back on Tuesday, as the current market volatility continued.
Short of any geo-political issues, TPG’s view is that we can expect the market to have sharp increases with slower reductions through to the middle of February, when the weather will calm down.
Gas: Gas prices fell yesterday as the UK expects to import more LNG with three LNG vessels expected to berth by the end of the week. The gas grid closed 3MCM long yesterday as domestic demand fell due to recent warmer weather.
Power: Power prices fell across the curve yesterday, tracking the gas market. However, Day ahead prices rose following a below average output of 8.2GWs/day.
Oil: Oil prices softened yesterday as investors moved focus away from the US sanctions on Russian oil to US politics and economics. The $USD is performing at highs not seen since October 2022, causing oil to be more expensive to non-currency holders.
Carbon (EU ETS): The ICE Dec-25 continued gain yesterday and rose to €76.96/t. The contract has opened stronger this morning and is trading at €78.13/t this morning.
Carbon (UKAs): The ICE Dec-25 fell to £34.31/t yesterday. The contract is trading at £34.55/t at the time of writing.