8th March 2024 Energy Price Alert – UK Gas & UK Electricity

On Thursday, as we had forecast, wholesale Gas and Electricity prices continued the drops that resumed on Wednesday.

At a retail level we are now seeing pricing around 20p/kwh for Electricity, and below 5p/kwh for Gas.

In terms of generation the price ticked up last week to £67.42/MWh, as gas prices rose and wind production dropped back. As gas prices rose wind generation dropped, and we needed to import 5.8GW in order to meet the weekly demand. As gas prices drop, wind power increases and days get longer we expect the generations costs to drop below £60/mwh in the next few months.

Gas: Gas prices fell yesterday as demand was expected to drop 6.3% due to the sudden surge in wind output. Further-out contracts also fell on the comfort of high storage, lower demand, and incoming mild weather.
Power: Power prices softened yesterday following a strong uptick in wind generation forecasts for this weekend, softening the prompt. The further-out contracts were influenced by the underlying gas market.
Oil: Fading hopes of the US bringing interest rates down weighed against the $USD, easing in comparison to non-US currency holders, bringing the market to settle flat. Chinese economy recovery hopes were high as crude imports showed a 5.1% increase. 
Carbon (EU ETS): The ICE Dec-24 closed flat at €59.16/t yesterday. At the time of writing, it is trading at €58.96/t. 
Carbon (UKAs): The ICE Dec-24 fell to £35.49/t yesterday. At the time of writing, the contract had yet to trade.

#gas #electricity #businessutilities #businessgas #businesselectricity

The Procurement Group

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