26th September 2023 Energy Price Alert – UK Gas & UK Electricity

Wholesale prices rose sharply, in the short term particularly, on Monday due to the Norwegian outages with gas particularly pronounced.

Our view remains that this is a temporary issue and that the market will adjust/reverse

Sleipner and Troll supported the gains in the prompt. However European Gas demand is 17% below the five-year average. 

Power: Power prices rose yesterday following the Gas market gains whilst Wind generation has been reforecast downwards by 1.3GWs/day to 10.3GWs/day, supporting prompt increases. 

Crude: Oil prices traded flat yesterday as investors considered Russia’s easing of their export ban. 

Carbon (EU ETS): The ICE Dec-23 closed at €85.27/t yesterday, trading flatly from the previous close of €85.48/t. The market opened softer this morning at €84.78/t and is trading at €84.3/t at the time of writing. 

Carbon (UKAs): The ICE Dec-23 closed at £35.87/t, slightly downwards from the previous close of £36.62/t. The contract has yet to trade at the time of writing. 

The Procurement Group

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