Innovative Energy Consultancy Ltd
Innovative Energy Consultancy Ltd

Energy Price Update

Short-term gas prices in the UK – despite a brief rally over Christmas following a flurry of outages – have remained largely bearish since mid-December amid sustained low temperatures and a lull in demand.  

Day-ahead gas prices fell by 9.5% in the second half of December as mild weather and low holiday demand failed to stir much buying interest.  Daily consumption levels lagged beneath seasonal norms by between 7% and 27%.

Unseasonably warm weather in mainland Europe too also meant further Norwegian and Dutch supplies were diverted to the (higher-priced) UK market.  Norwegian gas exports surged at the end of the month to their highest level of the year – of 330 mcm/d – with flows to the UK increasing the most, to 128 mcm/d.

Prices did briefly rebound either side of Christmas when unplanned outages hit both the Barrow gas terminal and the Dutch interconnector overnight.  

Nevertheless, the outages (and gains) were short-lived and prices turned to the downside again, throwing a bearish pall across the coming months.  

In electricity, the April Annual ’14 UK power shed more than £1, while future Annuals also edged lower, but by smaller amounts, having ramped gently higher in the run-up to Christmas.  

Coal prices have also dropped back to early December levels, on renewed expectations that Colombian exports will continue uninterrupted this month despite the introduction of tighter loading rules.


This is an extract from our monthly markets report ‘Energy Brief’.  To receive a copy, please email

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