16th February 2024 Energy Price Alert – UK Gas & UK Electricity

On Thursday, the recent drop stopped and wholesale gas and electricity prices were broadly stable with very small increases.

Winter 24 and Winter 25 Gas remains below 80p/thm.

On the generation side, renewables were back down to 36% with fossil fuels at 33%. Even though gas prices have dropped significantly, this did lead to an increase in the generation cost to above £60 per mWh.

Our outlook remains that UK gas and electricity prices will continue to drop, and this significant extra gas capacity coming online in the next 24 months. 

Have a good weekend.
Gas: Gas prices rose yesterday following a combination of unplanned Norwegian outages and competition from Asian buyers for LNG demand. However, gains were limited due to gas storage across Europe at a record high for this time of year, due to the milder weather during February.

Power: Power prices rose yesterday tracking the wider energy complex with gains in gas, carbon and oil. UK gas for power production averaged 8.7GWs throughout the first half of February, 2.6GWs less than last year, amidst strong wind generation. 

Oil: Oil prices rebounded from the bearish start to the day yesterday and finished the day stronger. Disappointing retail sales and manufacturing data lead the early decline but the $USD slid against other major global currencies, supporting prices. 

Carbon (EU ETS): The ICE Dec-24 contract rose to €57.91/t yesterday, gaining some upwards momentum after a recent downwards trend. The contract is currently trading up at €57.8/t. 

Carbon (UKAs): The ICE Dec-24 rose to £36.1/t yesterday. Opening lower this morning, the contract is currently trading at £35.9/t. 

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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