Gas and Electricity Year Ahead Wholesale costs are similar to last week. They remain significantly lower than most of 2021 / 2022 / 2023 but are comparable to 2024. Oil moved higher to $64 a barrel from $61.
After failed attempts to make progress in the peace talks between Ukraine and Russia, the US has placed sanctions against Russia’s two largest Oil companies. The EU also announced that Russian LNG will be banned from January 2027. In response, prices moved higher as the impact on global supplies was assessed, although in recent days, concern has eased. The ceasefire in Gaza continues to hold, making it less likely there will be disruptions to energy supplies from the Middle East.
EU Gas Storage remains at a low 83% full, compared to 95% last year. Due to the attacks by Russia on Ukraine’s energy infrastructure, the EU will likely need to provide them with additional Gas supplies. If below seasonal norm temperatures are forecast, we will probably see an exaggerated market reaction, not just for this winter, but for next, due to the need to replace Storage for winter 2026/2027, especially with the LNG ban.
There was a significant improvement in Wind generation last week at 40% from 17%. This meant there was less demand on Gas at 16% of Electricity supplies. Imports via the Interconnectors were higher at 17%. Despite the downward trend of Wholesale costs, there are a number of increases to other charges, notably Transmission from April 2026 and beyond. Please contact us if you need more information.
We would encourage those with energy contracts ending in the next few months and potentially further out, to engage with Indigo Swan and monitor positions closely.
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