Since our last Energy Report, Gas and Electricity Year Ahead Wholesale prices are up slightly.
On Friday the 10th of March both Gas and Electricity Wholesale prices saw a considerable increase due to more problems being found with French Nuclear reactors. A period of maintenance had appeared to have resolved issues and provided a positive outlook for Electricity exports to the UK. Prices have since fallen, but this event does illustrate just one reason for potential market volatility.
Over the last week we have started to see milder temperatures which is removing some of the Gas demand for heating. There has also been an increase in Wind, contributing 28% of Electricity over the last week, compared to just 12% the week before.
We continue to see large numbers of LNG deliveries that are helping to meet Gas demand and allow Storage levels both in the UK and Europe to remain high. EU levels are now 56% full, with a target of 90% by November 2023. This will require supplies to be diverted to Storage during warmer periods.
The government has announced that the Energy Bills Discount Scheme will replace the current Energy Bill Relief Scheme, from 1st April 2023. Please see our Blog for more details.
Should there be further supply issues, we could see an exaggerated price reaction. For this reason, we would advise discussing your options for contracts ending in 2023 with Indigo Swan.
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