State of the Energy Market – 22nd March 2022

Daily Updates

Gas prices for April 22 have bounced back today (22nd March) and have been trading in the afternoon at 4% above Monday’s close but for a change, power has been cutting its own path with, seeing a 6%
reduction against Monday’s close for April 22.

The latest information around Gazprom Marketing and Trading, the UK arm of Russian firm Gazprom is that they are finding it very hard to find any companies willing to trade with them in the UK open
energy markets. This adds more weight to the possibility that if they cannot find a buyer, as we reported yesterday, it is possible that the UK government may look to take the reins of the company in a similar way to what has happened with Chelsea Football Club. This would enable the business to
continue trading as normal until a buyer is found for the business.

Gas

Wholesale prices for gas fell on Monday (21st March) with April 22 closing at 225.31p per therm, which is 9.2% down on Friday’s closing price.

Electricity

Wholesale power prices also fell on Monday (21st March), but by modest levels compared to gas, with April 22 closing at £218.93 per MWh. This was a 1% fall on Friday’s closing price for April 22. 

In other energy related news:

  • Renewable UK have announced the total pipeline for potential offshore wind projects around the UK stands at 86GW.  If all of these were to come to fruition, it would represent an 8-fold increase on the offshore wind generation capacity currently in place. Given that China currently has a 75GW pipeline for new projects, it shows that the UK is pitching in with very ambitious levels.