24th November 2023 Energy Price Alert – UK Gas & UK Electricity

In anticipation of colder weather wholesale prices rose on Thursday.

We are seeing retail prices higher by 1p/2p per kWh over the course of the week as anticipated now that we are going in to colder weather although contracts starting next summer are now down below 22p/kwh

In terms of generation, last week saw renewables at 38.8% which kept pressure on prices as it was below 40%.

Our continued view is that the fundamentals remain strong for sustained lower prices.

Gas:  NBP contracts gained yesterday as an extension to colder weather boosted heating demand. The day ahead contract climbed to its highest level throughout November. This morning near curve contracts have opened down on last nights close.

Power: UK Power contracts largely tracked NBP gains throughout the curve yesterday. Colder temperatures and lower wind output pressured the front month whilst strengthening carbon prices applied pressure to the far curve. For todays price outlook, as of last nights close, please see table below.

Carbon (EU ETS): The ICE Dec-23 fell to €76.59 /t yesterday. The contract is currently €76.25/t at the time of writing. 

Carbon (UKAs): The ICE Dec-23 closed £45.26/t yesterday. Opening slightly lower today, the contract is currently trading at £45.10/t at time of writing.  
The Procurement Group

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