There has been a bit of volatility over the last 7 days with wholesale prices jumping on Friday & Monday, however, decreases today and yesterday. This is a slight change from the trend of the last few months.
China’s increase in demand from the lifting of covid measures caused the increases on Fri & Mon. This pushed electricity up by around 1 p/kwh in two days and gas around 0.5 p/kwh.
The reason for the increases suggests that the plateau over February will no longer continue and there could be a possibility that we will go through another period of Up & Downs. It is concerning to us that America diverted LNG to China due to their rising demand from the lifting of covid measures, with regards to the effect on European import and prices.
Although the UK doesn’t rely on it, this change still affects markets that we are involved in and Indian power operator NTPC Limited will need to import around 250 million m3 of LNG over the next two months in a drive to boost gas-fired power generation, with well-above average temperatures boosting cooling demand in the region.
The decreases occurred through increased wind generation and a re-strengthening of LNG imports does look like it’s going to affect global supply pressures due to increased demand in Asia.
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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