Friday Energy Update 30/6/23

The market has gone up and down over the last 7 days - however the overall trend is further light decreases which is good news!

Some recovery has occurred from increases in the previous week, however, it is still higher than at the beginning of June.

Now electricity rates are around 26 to 30 p/kwh and gas around 5.5 to 7 p/kwh –– depending on the standing charge.

Here are some observations below:

The wholesale market may have reached its lowest point this year in early June.

The market may remain plateaued over summer provided there isn’t any force majeure. However, the below are current threats to this, particularly if this is on-going whilst demand increases later in the year or temperatures drop below average in the near term.

• On-going Norwegian Plant Maintenance has meant flows have fallen to just 1.7 mcm/d to GB. This maintenance has been extended and is expected to last until Mid-July
• At which point Oil production cuts are due to occur via Opec extension to one million barrels per day to boost oil prices after a series of losses.
• LNG supply is also low.
• The above should put pressure on gas which in turn puts pressure on electricity – lifting prices – the above is what is causing a wobble in the market at the moment, but at a time where we have gone through above average temperatures which has helped to minimise increases.
• European storage levels for Winter are on     target and up significantly from this point last year, so this won’t ease     the market for decreases in the near term, as it has already done so.
• However, lack of wind generation isn’t helping at the moment, although it is unreliable for prediction, even day ahead.
• The Carbon Market has also recently become Bullish.

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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