20th February 2024 Energy Price Alert – UK Gas & UK Electricity

Due to the increased volatility and continued significant reductions, there was no price table issued on Friday.
Monday’s table below shows that the significant reductions that we saw throughout last week have continued into the start of this week.

The levels we are seeing now, were not anticipated and are way below anything that has been forecast.

This is due to ongoing high stop levels driven by higher than expected temperatures, meaning less consumption.

In addition, there is signifiant new gas production coming on stream in the next 24 months and our view that this will continue to drive prices down.

Gas: Weak fundamentals meant NBP prices continued to decline throughout yesterday’s session. Further pressure was added to the prompt from an oversupplied grid. 

Power: Power prices fell further yesterday, with bearish NBP and Carbon movements. Hartlepool’s Nuclear reactors 1 & 2 are both offline due to unplanned maintenance.

Oil: Oil prices fell yesterday after last week’s bullishness and profit taking. Ongoing tensions in the Middle East are causing uncertainty after yesterday’s attack, by Houthie rebels on UK operated cargo.

Carbon (EU ETS): The ICE Dec-24 contract fell to €53.54/t yesterday. The contract is currently trading down at €53.47/t. 

Carbon (UKAs): The ICE Dec-24 fell to £33.50/t at the end of yesterday session. Opening lower this morning, the contract is currently trading at £33.35/t. 

#gas #electricity #businessutilities #businessgas #businesselectricity

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