Market Prices At Lowest Point In 6 Months
Upfront prices have remained relatively stable over the Easter period as the markets settle on the back of the fallout from implementation of the US’ import tariffs and the subsequent reaction and response.
Seasonal temperatures remain at a typical level which therefore sees a reduce in demand, further helping to reduce wholesale cost.
The reduction in costs provides a great opportunity to renew and secure forward purchasing of your electric and gas contracts. Contact us now to discuss.
Market Drivers
Gas
Falling
Positive developments between Trump and Zelenskiy regarding ending the Ukraine war signal an improving relationship between the two countries and bolsters peace prospects.
Europe Council and Parliament are coming to a consensus around relaxing storage targets which could see the November deadline have a target 7-11% lower than currently. Shared purchasing is also being considered, reducing competition within the bloc.
Rising
Falling Asian demand could impact growth in US LNG export capacity in coming years and lead to a slower growth rate.
Whilst storage targets could be relaxed, Europe looks likely to extend the storage targets beyond 2025, maintaining some support from injection demand.
Electricity
Falling
European Commission launches a consultation into nuclear power which could act to improve state support and increase capacity, helping secure prices in the long term.
The UK government has pledged £300 million to boost domestic offshore wind manufacturing and to help secure private investment.
Rising
Concerns have been raised over summer wind and hydro output across Europe as a recent study showed decreases over recent years due to changing climate conditions.
Climatisation is leading to higher occurrences of warmer weather across Europe which could impact nuclear availability through lower water levels and heighten power-for-cooling demand.
Market Focus
EU Seeks Input on Nuclear Investment and Energy Security Strategy.
The European Commission (EC) is launching a four-week consultation to clarify investment needs for new projects and extensions to reactors. The trade dispute between the US and EU has reaffirmed to Europe the need to not be reliant on imports for their energy needs, a realisation that the Russia/Ukraine war had first brought to the forefront.
The consultation also looks to address some of the key issues related to nuclear, including how radioactive waste is managed and how they can avoid becoming reliant on one supplier for their nuclear fuel. It is thought that this could improve coordination between European powers on nuclear and inform national policy decisions. This could be advantageous to the French nuclear industry which has been struggling with ageing reactors and financing issues whilst also promoting the growth of capacity across Europe.
Key benefits of choosing a fixed contract versus flexible:
Multiple Supplier and Contract Options - Choose from multiple suppliers and contract durations to suit your needs
Hassle-free Exit - No long-term commitments or complex termination processes
Value-added services - Enhance your experience with a suite of additional free support and tools
Intuitive Customer Portal - Easily manage your services with 24/7 access
Get in touch with us to find out more.
info@dukefieldenergy.co.uk
0345 4022 461