7th March 2025 Energy Price Alert – UK Gas & UK Electricity
Wholesale Gas and Electricity prices continued their downward trend on Thursday, and are now back at levels not seen since September last year.
TPG’s view is that we can expect the downward pressure to continue.
In the past week the generation price for UK Electricity has dropped markedly below £100/MWh with Gas production dropping below 30% and a welcome return of Solar at 7.4%.
Gas: Gas prices softened yesterday. In the prompt, warmer weather has led to a decline in demand for heating, as domestic demand was forecasted 52.2mcm below norms for this time of year. The UK expects to receive three LNG cargoes by the 9 March 2025.
Power: Power prices fell yesterday as they were influenced by the declines in the gas and carbon markets. In the prompt, reduced demand for heating due to the warmer weather softened the need for gas-fired generation.
Oil: Oil prices rose yesterday, recovering from its recent losses despite US tariffs and an oversupply concern still gripping the market. Prices rose on recent figures from the Department of Labor showing jobless claims were less than expected, showing the US economy was stable and that automakers would be excluded from the 25% tariffs.
Carbon (EU ETS): The ICE Dec-25 fell to €67.32/t at the end of yesterday’s session. The contract is currently trading at €67.12/t this morning.
Carbon (UKAs): The ICE Dec-25 continued to slide yesterday, falling to £38.92/t. The contract has yet to trade this morning at the time of writing.
