Gas and Electricity Year Ahead Wholesale costs are down slightly, following a small spike last week, largely the result of reduced flows from Norwegian Gas assets, due to maintenance.
The upward price trend has continued, since the lows seen in February 2024, although to put this into context, costs are still a fraction of those we saw in 2021 / 2022 / 2023.
Energy markets are factoring a range of potential supply issues into Gas and Electricity prices, but importantly the high level of EU Gas Storage, now at 69% full compared to 67% in 2023 and 45% in 2022, is providing confidence for winter 2024/2025. As we rely so heavily on Gas for Electricity generation, the power price will closely follow.
There remains the potential that the conflict in the Middle East may still spread through the region, despite the easing of tensions between Iran and Israel. The recent death of the President of Iran adds more uncertainty. It is expected that Russia will look to increase military action against Ukraine, which could mean disruptions to Gas supplies as does the legal action being taken which threatens to prevent Austria from paying Gazprom.
Wind contributed an improved 20% to generation last week and Imports from the continent were 23%, reducing the need for Gas to 23%. We continue to use small amounts of Coal before its planned end later this year.
With energy markets reacting to any hint of supply or demand concerns, 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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