Wholesale Gas and Electricity prices eased back further on Thursday and have now both given up all of the gains seen earlier in the week.

We are seeing stability at a retail level, albeit suppliers are getting stricter on credit requirements and, therefore, factoring in larger credit risk premiums on an ad-hoc basis.

This, coupled with the increases in non-commodity costs, means that some customers are seeing increases.

On the Generation front, electricity was below £65/MWh which is encouraging for this time of year and indicative of 54% of production coming from renewables of which the bulk, as you would expect, was from wind. Fossil fuels were just 21% of Generation source last week.

We expect the Generation price to rise as we go into winter and fossil fuels become more dominant as temperatures drop.

Gas: Gas prices softened yesterday. In the prompt, a long position due to higher wind generation and LNG arrivals weakened prices. The curve fell alongside a strong European storage and injections gave the market confidence of early winter supplies. EU storage reached 83% whilst the UK medium range storage reached 86%.   Power: Power prices fell yesterday, supported by declines in the wider energy mix. In the prompt, a slightly elevated wind generation of 8.2GWs/day over the weekend softened prices further.    Oil: Oil prices weakened yesterday as investors continued to weigh up the global supply glut and a weakened demand.    Carbon (EU ETS): The ICE Dec-25 softened yesterday to €80.17/t. The contract has opened slightly higher today at €80.26/t.   Carbon (UKAs): The ICE Dec-25 closed trading at £56.70/t last night. Opening this morning slightly lower at £56.7/t.

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