Energy Market Update - 22nd February 2022

The situation between Russia and Ukraine has dramatically changed in the last 24 hours and as we write this, things are continuing to develop. This time yesterday there was hope of progress in discussions between a number of world leaders lead by President Macron and Russian President Vladimir Putin. However, late yesterday the Russian President held a press conference where he advised that Russia will now recognise two parts in Eastern Ukraine as independent. Since the announcement Russia has now moved troops into these two areas.

Today world leaders are discussing a response which will likely be in the form of a number of imposed sanctions, Germany has already announced it will halt the approval of the NordStream2 gas pipeline from Russia.

The markets are showing an increase of around 8% on yesterday’s close. With the uncertainty between Russia and Ukraine and the impending sanctions to Russia we can expect the same type of volatility we saw in 2021. As gas prices rise this will then have a direct effect on the electricity prices.

We understand this is a difficult time for all customers looking at their utility contracts. Our advice is to contact the team if you have any concerns. We have a range of options to help manage the risk of high prices and the market volatility. Contact us.

We also have a webinar coming up on Thursday 24th February at 1pm in partnership with Crescent Purchasing Consortium. We will talk through the current market conditions, provide the most up to date information and address any queries/concerns.

Sign up here.