Tuesday’s (5th April) prices have seen a small fall, but curve prices have increased by as much as 8% for both gas and power. The increase in the curve prices appears to be driven by the fact that the EU has further increased its sanctions against Russia with a ban on Russian coal now due to come in following the alleged atrocities being revealed in some parts of Ukraine as Russian troops have started to withdraw.
We had a falling market for wholesale gas prices on Monday (4th April) with May closing at 244.06 pence per therm, which was a 5% fall against Friday’s close.
Wholesale electricity prices followed gas but fell by slightly less on Monday (4h April) with May 22 closing at £213.98 per MWh, which was a 3% fall on Friday’s price.
In other energy related news:
- Another peak into the anticipated Energy Strategy Paper, which is now due to be released on Thursday this week, suggests that there will be a removal of existing hurdles for homeowners to install solar panels. As usual, the devil will be in the detail, but if proven to be workable, it should significantly increase the amount of self-generated power from the domestic market.
- However, the opposite appears to be the case for onshore wind. 100 Conservative MPs have been lobbying hard against the serious development of onshore wind projects fearing the potential ‘not in my back yard’ voter rebellion that could ensue. Kwasi Kwarteng, the Business Secretary, and Michael Gove, the Levelling Up Secretary, are very much in favour but Grant Shapps, the Transport Secretary, has described them as an eyesore, so it will be interesting to see which way Boris Johnson will decide to go. More detail to follow on Thursday or whenever the report ends up being issued.
- A plan to install an enormous solar farm the size of approximately 80 football pitches near the M54 in Telford appears on the brink of refusal by local councillors who have called it the ‘wrong project in the wrong area’. The project, with a lifespan of 40 years, will supply enough electricity for 11,000 local households and save 7,000 tonnes of carbon emissions annually, will be decided tomorrow but those initial comments suggest that rejection of the project is likely.
- Gazprom Energy, the UK arm of Gazprom the Russian energy supplier, has today announced that it is no longer controlled by its parent company in Russia and is now instead controlled by the German state. It goes on to say that the German regulator has taken control of the Gazprom entity in Germany until 30 Sep 22. Gazprom in the UK is in the reporting line of the German Gazprom entity and as such, Gazprom Energy is now controlled by the Germany regulator. This is a surprising turn of events and we are still evaluating what this will mean for Gazprom customers in the UK. More to follow on this point in the coming days.
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