2024 Winter Energy Market Update

With healthy levels of gas in storage, further LNG shipments due throughout January, and steady flows coming in from Norway, both electricity and gas market prices are looking more attractive than they were.

We aren’t back to 2021 and before levels, but we are certainly currently in a better position than last year.

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The April 24 electricity annual (at time of writing):

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·        Trading at around £80/mwh. This time last year, it was trading at £150/mwh.

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The October 24 electricity annual (at time of writing):

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·        Trading at around £80/mwh. This time last year, it was trading at £146/mwh.

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The April 24 gas annual (at time of writing):

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 ·       Trading at around 86p/therm. This time last yearit was trading at 148p/therm.

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The October 24 gas annual (at time of writing):

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·        Trading at around 88p/therm. This time last yearit was trading at 136p/therm.

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With the recent cold snap, the market hasn’t been as bullishas it may have been. Yes, we have seen the prices moving but the movement has been more subdued.

Given the current market levels, we believe it could besensible to look at forward contracts that are due for renewal at any time this year.

We have more clients asking us about flexible contract opportunities as well. Clients that we secured flexible contracts for last year have benefitted. We can’t guarantee the same going forward, but they could well be worth considering, especially as we can remove the risk at any point and lock-in.

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