23rd January 2024 Energy Price Alert – UK Gas & UK Electricity

Gas and electricity prices resumed their downward trajectory on Monday and with more storms forecast, meaning increased wind production, we expect this to continue.

The gap between Q2/Q3/24 and Summer 25, remains larger than we would like, but we expect this to reduce in the coming months.

Gas: Gas prices fell yesterday due to the combination of an increased Wind output and less demand for Gas in heating and gas-fired power. However, delays of LNG arriving in the UK due to storm Isha has provided some resistance to the declines. 

Power: Power prices also fell yesterday as Wind generation reached a forecast potential of 17.5GWs/day for the remainder of the week, reducing demand for more expensive fuel-fired generation. 

Oil: Oil prices continued to rise yesterday due to the growing tensions in the Middle East out-weighed concerns of the Global economy slowing in 2024, reducing demand. 

Carbon (EU ETS): The ICE Dec-24 fell to €62.04/t yesterday. The contract is currently trading at €62.71/t at the time of writing. 

Carbon (UKAs): The ICE Dec-24 also fell, closing at £34.65/t yesterday. Opening stronger this morning, the contract is currently trading at £35.3/t. 

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

Join us...

and 2000+ other CFOs and FDs who are already enjoying our free resources and industry insights.