Wholesale gas and electricity prices jumped sharply on Thursday as a result of Iranian comments regarding the likelihood, or lack thereof, of the current hostilities ending anytime soon.
In terms of generation, the price last week of £114 per megawatt-hour was the lowest we’ve seen for a while and markedly down on the previous week, when it was approaching £150 per megawatt-hour. Fossil fuels were still at almost 25%, and that is what keeps the price of electricity very high at the moment.
At a retail level, we are starting to see MHHS increases coming through (if you’d like our white paper on this, let us know), and this is having a disproportionate effect on users with low consumption. As far as unit prices are concerned, we continue to see unit prices dropping back the further out one is prepared to commit.
| Gas: Gas prices continued to rise across all contracts yesterday as the US and Iran continued to dance around control of the Strait of Hormuz. An escalation in the conflict came from the Houthis attacking Saudi Arabia, raising concerns in the area. Prices have opened bearish this morning. Power: Power prices increased coupled with the gas market yesterday. Prices have softened this morning. Oil: Oil prices rose by 3% yesterday after a Houthi attack on Saudi Arabia revived fears of supply disruptions. Prices softened in the early open today as traders weighed up US and Iran negotiations in New York exploring a phased path out of the war, which would involve reopening the Strait of Hormuz and lifting economic blockades on Iran. Carbon (EUAs): The ICE Dec-26 closed at €86.96/t last night. The contract opened this morning at €86.60/t. Carbon (UKAs): The ICE Dec-26 traded to £59.77/t yesterday. The contract opened at £59.85/t this morning. |
#gas #electricity #businessutilities #businessgas #businesselectricity