18th January 2024 Energy Price Alert – UK Gas & UK Electricity

Continued significant reduction in both gas and electricity are most welcome!

Retail prices are reflecting the wholesale price decreases, with electricity now regularly below 20p/pch for the right kind of contract.

We expect the reductions to continue due to strong supply lines, although there will inevitably be bumps in the road.

Our advice continues to be to enter into short term contracts for both gas and electricity in order to capture the prices available now and also having the flexibility to capture further reductions for future. 

Gas: Prices moved downwards yesterday as steady supply offset heating demand. The grid was long throughout much of yesterday’s session adding pressure to the prompt. Nominations from the Langeled pipeline with Norway remain near capacity.

Power: Power contracts also continued their descent yesterday, tracking NBP movements. Temperatures are expected to rise above seasonal average next week accompanied by increased wind output, against seasonal norm, of around 20%.

Oil: Oil prices fell yesterday as economic data coming from China raised concerns around demand. Inflation in the UK and Europe along with increased OPEC supply levels added to the bearish sentiment. 

Carbon (EU ETS): The ICE Dec-24 continued to fall yesterday, closing at €63.15/t. Opening at €63.39/t this morning, the contract is now trading at €63.69/t. 

Carbon (UKAs): The ICE Dec-24 fell to £33.43/t yesterday. The contract is currently trading up at £34.27/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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