State of the Energy Market – 31st March 2022

Daily Updates

After initially opening up against Wednesday’s prices, the energy wholesale prices have softened on Thursday (31st March), but gas for May 22 was at 3% above Wednesday’s. Conflicting factors have led to smaller price movements. Some parts of the country experiencing snow and below seasonal normal temperatures have led to a greater demand and will continue to do so for the next few days as temperatures are expected to stay low into the weekend.

On the plus side, flows of Russian gas have remained high for now and we’ve seen the largest increase in flows through the Mallnow pipeline, which brings gas from Russia to Poland, since 1st March, which is helping to dampen the increasing market prices.


Wednesday was the last day for buying gas for delivery in April 22 with most suppliers. Wholesale prices increased mainly as a result of little breakthrough being made in the peace talks between Russia and Ukraine. The market initially opened up with large percentage increases against the previous day’s close, but then softened towards the close of the day when the Kremlin eased market fears by stating that a transition period could apply for payment for future gas supplies in roubles for the G7 countries. Although trades reached over 300 pence per them in the morning, April 22 closed at 283.23 pence per therm, which was a 7.5% increase on the previous day.


Wholesale power prices very much followed gas closing at £244.67 per MWh on Thursday (31st March) up 6.6% on the previous day.

In other energy related news:

  • After positive news from the Kremlin, that a transition period could apply for payment for Russian gas from euros to dollars, President Putin through his hat in the ring  signed a decree confirming the messaging he’d given earlier in the month. This is that all payments for Russian gas delivered from 1st April 22 will need to be made in roubles.  Watch this space for what happens next, will the G7 countries cave or can a compromise be reached?
  • The Intergovermental Panel on Climate Change (IPCC) have launched their latest, and to date, most comprehensive, climate report. The report suggests that all global regions are now impacted by climate change and 3.3 to 3.6 billion people are living in areas of high vulnerability. The report paints a very bleak picture for the future if we do not make greater efforts to get a grip on climate change. It suggest that extreme weather patterns like heatwaves, droughts and floods that are already causing havoc globally, will continue to increase in frequency and resulting damage as we see little chance of hitting the previously set goal of only increasing global temperatures by only 1.5 C by 2030. It also suggests that up to 15 times more people have died between 2010 and 2020 in areas most at risk e.g. parts of South America, Central America, Africa and South Asia compared to less vulnerable areas.  You can download the full report here, but as it contains over 3,000 pages, you may wish to wait for a summarised version that we’ll produce in the coming weeks. 

Get in touch with us to see how your costs will be impacted – We can help you find solutions to mitigate against this.