21st June 2024 Energy Price Alert – UK Gas & UK Electricity

Wholesale gas and electricity prices dropped markedly on Thursday and more than compensated for the very modest increases of the last two days to end the week down on the previous week.

As retail prices are still heavily factored by sector and credit, at TPG we have suppliers that will take any business, but the more risky it is perceived, the fewer supply options we have.  For business that they want, suppliers are quoting around 4.5p/kWh for gas and sub 20p/kWh for electricity.

On the generation side, renewables dropped back to 32% last week and the generation price was £78.68/Mwh.  Gas was still the dominant source at over 24% which is why the generation price remains high.

Gas: Gas prices settled mixed yesterday. Declines in the carbon market softened gas prices whilst ongoing unplanned maintenance at Norway’s Visund field continues to impact near curve supplies, alongside the UK only to receive one LNG cargo by 26 June.

Power: Power prices were influenced by the carbon market’s decline yesterday. Wind generation remained below seasonal average, forecasted to produce 5.7GWs for the remainder of this week.

Oil: Oil prices have been supported by high tensions in the Middle East and lower crude stocks in US inventories.

Carbon (EU ETS): The ICEDec-24 fell to €69.22/t. This morning, the contract was trading at €69.18/t after reaching a low of €68.74/t earlier in the morning.

Carbon (UKAs): The ICE Dec-24 reversed the previous two weeks and fell to £45.55/t yesterday. At the time of writing, the contract had not yet traded today.

#gas #electricity #businessutilities #businessgas #businesselectricity

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