3rd April 2025 Energy Price Alert – UK Gas & UK Electricity
On Wednesday wholesale Gas and Electricity prices dropped as we had hoped they would. TPG’s view is that we can expect more modest reductions going forward, but there will be still be reductions!
Gas: Gas prices fell in the prompt as a strong renewable output led to a decrease in demand for gas fired generation. British demand is currently 153mcm/day, 77mcm/day below seasonal average for this time of year.
Power: Power prices softened across all contracts yesterday. Prompt prices continued to fall due to continued strong renewable generation from solar and wind, generating 2.9GWs and 9.3GWs respectively. Curve prices tracked the movements in the gas and carbon markets.
Oil: Oil markets traded flat yesterday whilst they anticipated the news on US tariff policy due to be announced last night.
Carbon (EU ETS): The ICE Dec-25 closed downwards to €68.55/t yesterday. After a bearish start to trading this morning, opening at €66.40/t, the contract has strengthened to €67.09/t at the time of writing.
Carbon (UKAs): The ICE Dec-25 fell to £44.9/t yesterday. The contract is currently trading at £44.8/t this morning after opening lower at £44.06/t.
