4th April 2025 Energy Price Alert – UK Gas & UK Electricity
Wholesale Gas and Electricity prices continued their significant drops on Thursday, which is welcome news going into the weekend.
TPG expect further reductions, with these impacting retail by up to 10% during the course of the Summer.
On the generation front, prices have dropped back markedly from the £100/MWh seen just a few weeks ago. the main driver being renewables with, understandably, solar being over 10% last week for the first time this year.
Gas: Gas prices slumped across all contracts yesterday. In the prompt, prices continue to be driven downwards by strong renewable generation and less demand due to warmer weather. Curve prices were softened by the US President’s decision to implement global tariffs, causing traders to assume a global economic slowdown.
Power: Power prices fell yesterday, with the curve tracking bearish momentum in the gas market. Prompt prices rose marginally as a market correction from the previous day, despite a forecast of continued strong renewable generation.
Oil: Oil prices fell yesterday as the US blanket tariffs policy is expected to cause a global economic slowdown, whilst OPEC+ announced plans to increase production in May. China is to receive a 54% import tariff, whilst Japan and the EU receive 20%, and the UK receives 10%.
Carbon (EU ETS): The ICE Dec-25 slipped downwards to €66.06/t yesterday. The contract is currently trading at €65.86/t at the time of writing.
Carbon (UKAs): The ICE Dec-25 traded flat yesterday, settling at £44.88/t. The contract has not yet begun trading this morning at the time of writing.
