Friday Energy Update 10/11/23

The wholesale market has seen overall decreases in the last 7 days. Similar story to the previous week where increases occurred at the front end with larger decreases at the back end.

Increases attributed to fresh EU Sanctions on Russian Commodities. In particular sanctions against Russia’s project artic LNG 2. This is likely to raise geo-political tensions between the US & Russia. Decreases attributed to High Wind Output – Increasing 10% day on day vs gas fired generation which fell by more than 21% during the week.

Gas demand is higher now, however, the potential gains here have been negated currently by considerable losses on the oil market. However, as of yesterday we are starting to see the effects come through of increased demand now with a very slight increase (0.2 p/kwh equivalent).

European storage levels are now at over 99% full, giving some certainty heading into the winter months which is good news.

The market is in a far better position now given the 3 year view here. However it is still around 90% higher than typical historical wholesale position prior to the Russian circumstances. The forecast is for the market to decrease moderately year on year as further renewables enter the system, although it won’t be until around 2028 that we will back to the level pre Aug,21.

Therefore renewing 12 months at a time should help to reduce your costs over the short – medium term.

Get in touch

We are currently saving our clients, up to 60% on their utility bills. Please feel free to contact our Business Efficiency Team, on 01273 424904. So, we can provide you with recommendations around reducing your energy costs.

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