Gas and Electricity Year Ahead Wholesale costs are lower than last week and show good value. Oil is lower at $68 from $69.
The EU’s Gas Storage levels continue to be a focus for the direction of Gas prices and therefore Electricity, due to its use for generation. Gas Storage is 34% full compared to 45% last year. Withdrawals to support the additional heating, normally continue until the end of March. Based on recent years, that would mean they will be in the region of just 26% full in April, possibly lower, depending on the temperatures across Europe. Concern will most likely continue through the warmer months, as any available supplies will be diverted to Storage with some urgency for winter 2026/2027, due to the EU’s ban on Russian LNG from January 2027.
There are other factors which are impacting on costs to a lesser extent, which include the potential for military action in the Middle East between the US and Iran. Also, Europe’s reliance on US LNG makes us vulnerable to disruptions, if for example, politicians use LNG shipments as leverage, as was feared when the US announced tariffs against those that opposed their ambitions for Greenland. This has focused the EU’s efforts to finding other sources.
The last week saw a lower contribution of Wind generation at 27% from 33%. Gas was higher at 38% from 34%. Imports were higher at 11%.
We would encourage those with Gas and Electricity contracts that are due to end in the next few months and possibly further out, to potentially take advantage of the competitive prices. Please contact us to discuss energy contract options or to explore opportunities to save on other charges for Half Hourly metering.
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