State of the Energy Market – 18th March 2022

Daily Updates

The International Energy Agency (IEA) launched a 10-point plan to remove reliance on Russian gas and reduce the European Union’s Reliance on Russian Natural Gas. While this is not new or ground-breaking in the plan, it’s good to see that they are on the same wavelength as the UK government and the EU with their thought process. 

Boris Johnson has continued to hint that the UK government’s long awaited energy security plan, which has been delayed for several weeks is now expected to be revealed next week, will include a big emphasis on increasing the current targets set for offshore wind generation. The goals are likely to now also include floating wind turbines. The current target of increasing the present levels by a factor of four are already expected to come at a considerable cost to bill payers, as many of these significant
infrastructure changes can end up being passed through to end users and so, it will be interesting to see if there is a well thought-through plan as to how the targets will increase without further costs being passed down the line to customers.  

Get in touch with us to see how your costs will be impacted between 2024 and 2030! We can help you find solutions to mitigate against this.

Gas

Wholesale gas prices were on the increase yesterday, April 22 closed at 249.78 pence per therm, up
3.6% on Wednesday’s closing price. This morning, gas prices opened up slightly on yesterday’s close but as has been the theme in the last week or so, prices have drifted down within day and we expect to see a closing price below yesterday’s close for April 22 today.

Electricity

Wholesale power prices were also up 3% yesterday with April 22 closing at £226.08 per MWh. This morning has seen a quiet start for power but the expectation is that power will follow gas within
day with prices expected to close below where we ended yesterday.

In other energy related news: