State of the Energy Market – 24th March 2022

Daily Updates

The wholesale price increases on Wednesday (23rd March) were driven by the news that President Putin had insisted on all ‘unfriendly countries’ being required to pay for the gas that they buy from Russia in Roubles. This caused concern through the markets, and there were questions as to whether any of the sanctions imposed by the EU would be impacted by this. It is also no coincidence that the announcement from President Putin was just ahead of President Biden’s visit to Europe who encouraged his European partners to advance further sanctions against Russia, specifically against Russia’s energy sector. Germany’s Chancellor, Olaf Scholz, has freshly reiterated his opposition to energy sanctions against Russia warning, stating that this would lead to an economic recession in many European countries with Germany being more impacted than others. 


Wholesale gas prices were on the increase again on Wednesday (23rd March), with April 22 closing at 277.50 pence per therm. This was a 16% increase against the previous day’s close. The trading on Thursday (24th March) has seen further increases with some trades knocking on the door of 300 pence per therm but not quite surpassing that level. 


Wholesale power prices were also up on Wednesday (23rd March) with April 22 closing at £236.41 per MWh, an increase of 10% on the previous day’s close.

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