Gas and Electricity Year Ahead Wholesale costs are lower than last week, but the general upward price trend continues, from the lows seen in February 2024. However, putting this into context, costs are still a fraction of those in 2021 / 2022 / 2023.
EU Gas Storage levels are now 75% full, the same as this time last year and significantly higher than the two previous years. It is likely that the target of 90% will be exceeded again and reach capacity before winter 2024/2025, when it will be used to support the additional demand from heating. There have been a number of recent price pressures which would have had a much bigger impact if Storage was not so positive.
LNG deliveries remain very low as shipments head to Asia where there is a higher demand and a price premium. Gas from Norway is now Europe’s main source with a significant decline from Russia. Some EU members are keen to stop importing LNG from Russia, but this will probably be sanctions by individual nations rather than an EU wide ban as there will likely be opposition.
Over the last week we have seen a reduced contribution from Wind for Electricity generation at 15%. Imports from the continent via the Interconnectors were up slightly at 22% and Gas at 25%.
We would encourage customers that have Gas or Electricity contracts ending in 2024, to discuss options with Indigo Swan and closely monitor the position.
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