Wholesale gas and electricity prices finished the week in a bullish mood with good reductions across the board.
Much of the recent movement had already been factored into retail prices although some suppliers did take the opportunity to tickle their prices up by up to 0.5p per kWh on both gas and electricity in the last week. This was probably just those suppliers that were less well hedged although it could have been a little bit of profiteering.
We view much of the volatility as necessary given the high levels of UK stock traders who are finding old habits hard to change.
| Gas: Gas prices fell last Friday. The market lost liquidity due to the global IT disruptions, with the number of trades being down 75%. The British linepack was expected to end the day 12MCM oversupplied. Power: Power prices fell at the conclusion of last week, tracking the gas market. The Heysham 1 nuclear reactor is due to return to full service in the middle of this week, following an outage for refuelling. Oil: Oil prices slipped at the end of last week. Concerns surrounding a slowing Chinese economy proved to be the main focus of the week. Carbon (EU ETS): The ICE Dec-24 closed at €66.3/t last Friday. The contract is currently trading lower at €66.15/t this morning. Carbon (UKAs): The ICE Dec-24 fell to £40.72/t last Friday. This morning, the contract has not yet traded at the time of writing. |
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