Gas and Electricity Year Ahead Wholesale costs are higher than last week. Oil is also higher at $71 from $68.
The potential for conflict between Iran and the US is adding some upward pressure to prices. We are finding that daily reports of discussions or military movements are impacting on prices, which is an indication that more definite actions, whether peaceful or conflict, could see greater reactions. The concern is that Oil and LNG exports from the region, notably through the Strait of Hormuz, could be disrupted.
EU Gas Storage has fallen to 31% full compared to 41% last year and 64% in 2024. Based on previous trends, that could mean that levels are just 25% full by the end of March, when Gas normally begins to be put back into Storage. With the knowledge that Russian LNG will be banned by the EU from January 2027, we should expect an additional pressure on Gas supplies through the warmer months, as it is stored for winter 2026/2027. It is believed that a milder period is due, so that may slow withdrawals and allow some relief. Europe’s dependence on US LNG has grown which makes us vulnerable to their weather events and political pressures, which have impacted on Wholesale costs in recent months.
The last week saw a higher contribution of Wind generation at 37% from 27%. Gas was lower at 26% from 38%. Imports were higher at 13%.
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.
If you enjoyed reading this blog, why not try one of our others:
