Annual gas and power prices have fallen in the last week, with concerns over a disruption in Russian supplies easing. Russia and Ukraine have agreed on a continuation of gas supplies in the short-term, allowing time for talks to conclude on summer gas flows. This reduces the potential risks for exports to Europe, which flow through Ukraine, being affected. However, there remain concerns that the conflict in Ukraine will still impact on the gas exports. The impact of any disruption is being mitigated by falling energy demand as winter comes to an end. Gas supplies have also been generally healthy, with UK and Europe continuing to receive high volumes of LNG due to weak prices and demand in Asia. The UK had 5 cargoes in February and 4 have already been booked for March. There has been a strong use of storage reserves in recent months across Europe, leaving inventories around 30% of capacity. However, with temperatures rising, the call on the remaining reserves is expected to be limited, and the access to LNG should help refill stocks over the summer. Volatility in wind output has provided support to near-term power prices, but the return of Hartlepool 2 reactor from maintenance has increased nuclear output to over 7GW again.
With the current market levels at a near 4 year low we are recommending all clients with a 2015/2016 electricity & gas contract renewal to go to market now for new pricing. Please contact Syntegra Energy Utilities on 08450 091 625 regarding our transparent Online Energy Reverse Auction Platform (syntegra.energybutingportal.com) on how we can assist you with free set up to access the market.
This document is for information purposes only. The information contained has been compiled from sources believed to be reliable. Whilst every effort has been made to ensure that the information is correct and the views are sounds, Syntegra Energy Utilities cannot be made liable for any loss no matter how it may arise.