15th March 2024 Energy Price Alert – UK Gas & UK Electricity

On Thursday, wholesale gas and electricity prices rose sharply, as Traders won the battle of wits with the market fundamentals.

It is our opinion, there remains no reason for prices to increase, other than blips caused when Traders closed out lock making decisions.

Retail prices for electricity, subject to credit and sector, remain around 20p/kWh with gas just below 6p/kWh.

On the generation side, the price last week rose significantly to 70.46/MWh despite renewables being at 44.2%. 

Have a great weekend.
Gas: Gas prices rallied yesterday following the gains in the carbon market. However, fundamentals remained low, limiting further gains. The British gas grid was 4.4mcm long yesterday.

Power: Power prices rose yesterday tracking the underlying wider energy mix. Gas for Power production has averaged 9.6GWs/day so far in March, which is 2.4GWs/day lower than the 2019-2024 average for March.

Oil: Oil prices rallied yesterday after the IEA edged up its projected global demand growth to 1.33million bbl/day from 1.22million bbl/day. 

Carbon (EU ETS): The ICE Dec-24 found some support and rose to €58.45/t yesterday. The contract is currently trading at €59.07/t, at the time of writing. 

Carbon (UKAs): The ICE Dec-24 continued to rise yesterday and settled at £37.75/t, the highest price since the start of February. The contract is currently trading at £37.89/t. 

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

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