Energy Market Update
What's happening in the energy markets this month, and how does this impact your prices?
Gas prices down 26% in December
- UK gas prices dropped in December due to ample supply and mild weather reducing demand for gas.
- Mid-month, gas prices saw a spike due to cold temperature forecasts and a delay in Liquefied Natural Gas arriving at UK terminals due to high winds, but the impact was short-lived.
- At the end of the month, the sign off of the gas transit deal between Russia and Ukraine allayed concerns around supply and pushed gas prices even lower..
Electricity prices down 14% in December
- Electricity prices followed the trend seen throughout 2019 and continued to fall in value during December, in line with gas prices.
- Mild temperatures and good wind generation contributed to the fall as well.
Things to watch out for
- As we're now in the second and coldest part of the winter season, the weather is crucial for prices as unexpected or prolonged cold spells can lead to an increase in prices.
To discuss your prices, and the best time to go to market with your contract renewals, contact us today!