State of the Energy Market – 11th April 2022

Daily Updates

Good wind levels predicted for the UK and temperatures returning to normal this week, and in some areas being above seasonal norms, has seen the market open down this morning (11th April 2022) and continue to tail off with May 22 falling to below £200 per MWh for the first time since 25th February for electricity.  Power was last showing a 3% drop compared to Friday for May 22, whilst gas has been even more aggressive with a 7% drop for May 22 being compared to Friday. Prices further out in the curve have been increasing though and we have now seen a return the standard winter prices being more expensive than summer prices approach, after the reverse recently being the case.


After initially opening up, wholesale gas prices closed down on Friday (8th April 2022) compared to the previous day’s close with May 22 closing at 228.54 pence per therm. This was a 2.1% drop compared to Thursday, 7th April. 


Wholesale power followed gas on Friday (8th April) and after initially opening up on Friday, prices tailed away towards the end of the day with May 22 closing at £201.29 per MWh. This is a 2.6% drop against Thursday’s close.

In other energy related news:

  • Italy will be signing a deal with Algeria for delivery of an extra 9 billion cubic metres of LNG per annum. Italy currently received the lion’s share (approximately 40%) of their gas requirements from Russia, but this deal will see Algeria overtake Russia as the largest importer of gas into Italy.
  • The latest review from the Citizen’s Advice Bureau has found that Utilita lead the table for worst energy suppliers when it comes to customer service. Also, appearing in the worst supplier section were Boost Power, Ecotricity, Good Energy and OVO. Amongst the best performing suppliers were M&S Energy, EDF Energy, Octopus Energy, Affect Energy and So Energy. The results are heavily dominated by the residential market, and so the results are therefore not representative of the experience we have observed in the business customer sector.
  • The hunger for LNG from the Unites States from Europe and Asia in the last 12 months has led to the US exporting an extra 13% of LNG between Nov 21 and Jan 22 compared to normal levels.  To satisfy the global demand for LNG, the US has had to tap into their own gas reserves, which are now at unusually low levels for this time of year.  This has led to US gas prices rising to their highest levels in more than a decade. They are still considerably below the prices we are seeing in Europe and Asia, but it will be interesting to see if US gas prices continue to rise, and whether more gas will be available to Europe and the UK, than already promised by Joe Biden in his recent visit to Europe.
  • INEOS, the chemical and energy company, has offered to develop a test site for Shale gas in the UK to prove to the government that fracking can be performed safely. Fracking is currently banned in the UK but the government has recently asked for further surveys and analysis into this controversial industry with a view to developing more UK based energy sources there by becoming more self-sufficient so that the current levels of imported energy can be dramatically reduced.

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