State of the Energy Market – 14th April 2022

Daily Updates

Both gas and electricity costs were largely stable on 13th April, but began to rise in the afternoon. Despite the drop in the amount of Russian gas flowing via the Ukrainian pipeline, which has remained unchanged since the previous report, European storage has been gradually replenishing over the last week. However, the long-term risk persists, since the Russia-Ukraine crisis appears unlikely to be resolved anytime soon, and additional sanctions may be applied.

Gas

Wholesale gas prices for May 22 increased slightly on Wednesday, 14th April, closing at 213.09 pence per therm. This was a 0.92% rise against Tuesday’s closing price.

Electricity

Wholesale electricity prices for May 22 also increased slightly on Wednesday, 14th April, closing at 193.53 per MWh, which was a 0.39% movement against Tuesday’s close.

In other energy related news:

  • During the four-day weekend designated to honour the Queen’s Platinum Jubilee celebrations, from June 2-5, power demand in the UK is predicted to plunge to its lowest annual level. Low power demand can be a severe problem for the grid, increasing the likelihood of power outages; as a result, the National Grid may have to pay power generators to reduce energy supply at this time.
  • In response to Russia’s invasion of Ukraine, clients and business partners refused to do business with Gazprom companies in Europe, putting them under pressure. To prevent a market meltdown, banks and commercial partners have been urged to continue doing business with the company by the German Federal Network Agency. The German energy regulator temporarily took control of Gazprom Germania GmbH earlier this month to maintain supply security, and it was recently announced that Gazprom will not return to the Russian gas giant’s ownership. As a result, some of their colleagues have resumed doing business with Gazprom, while others are still processing recent events.
  • In an attempt to cut Vladimir Putin’s energy ties, Slovakia, Romania, Hungary, and Poland have broken with the EU ranks and agreed to establish their own hydrogen grid in the region.
  • The number of smart meter installations rose in March, hitting its highest level in four months which was a 2% increase over the same month the previous year.

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