4th August 2023 Energy Price Alert – UK Gas & UK Electricity

A mixed bag on Thursday with more rises than drops on electricity but only rises on gas.

While W24 prices are higher than W23 and W25 at retail we are seeing 2 year contracts at very favourable rates presently.  Depending on your risk appetite you could take either a 1 or 2 year deal to lock in savings over last years rates.

On the lower chart renewables were over 40% last week which helped keep electrciity prices down.
Gas: Gas prices rose yesterday following an undersupplied system, with Norwegian imports falling due to the maintenance at the Troll field. Further out curve prices rose due to competition with Asian buyers. 
Power: Power prices settled mixed yesterday, following bullish pressure from the Gas market. Near term gains were limited by the continued high output of Wind generation. Unplanned reduction of the East-West interconnector strengthened prices in the prompt. 
Crude: Oil prices reversed the previous days losses after Saudi Arabia confirmed to extend their production cuts throughout September, ahead of the OPEC+ meeting later today. However, gains were limited due to the Bank of England increasing interest rates to 5.25%, with market sentiment expecting another increase in September. 

Carbon (EU ETS): The ICE Dec-23 rose to €84.77/t yesterday. Opening stronger at €85.3/t today and is currently trading at €84.95/t.  
Carbon (UKAs): The ICE Dec-23 contract traded flat yesterday at £40.55/t. The contract has opened at £40.5/t today, and is currently trading at £40.36/t. 

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