19th January 2024 Energy Price Alert – UK Gas & UK Electricity

Both gas and electricity prices rebounded slightly on Thursday, following the significant reductions over the last four days.

The increases were not significant and W24 Gas now sits at 86.70/thm.

We have already seen some reductions at retail with electricity touching 20p/kwh and expect further retail reductions at these markedly lower wholesale prices wash through.

On the generation front, renewables remain just below 30%, meaning that the majority of electric generation was fossil fuels in the past week. This is good news for the coming months, as renewables kicks in during Spring through to the Autumn period, the cost of generation will reduce, from the already subdued levels that we are seeing.

All in all a good end to a positive week.

Have a good weekend!
Gas: Increased demand and a short grid helped prices rebound slightly yesterday. Forecasted lower temperatures for the rest of this week lifted heating demand, adding further pressure to the day ahead price. 5 LNG shipments are expected to reach British shores next week.
Power: Power contracts gained throughout yesterday’s session. Wind output for the remainder of this week has been revised upwards, with a predicted output of 16.2GW/day. Power imports throughout this month have averaged 1.8GW/day, 0.8GW lower than January last year.
Oil: Crude gained in value yesterday with news of IEA demand growth throughout 2024. The risk of escalation to tensions in the Middle East also added bullish sentiment. 

Carbon (EU ETS): The ICE Dec-24 closed at €63.01/t yesterday. Opening higher at €63.55/t this morning, it has since dropped back to €63.14/t. 
Carbon (UKAs): The ICE Dec-24 gained modestly yesterday, closing at £34.12/t yesterday. Starting the day up this morning at £34.60/t, it has since fallen to £33.77/t.

#gas #electricity #businessutilities #businessgas #businesselectricity

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