News & Blogs

Wholesale energy markets were relatively stable during June, despite continued geopolitical uncertainty in the Middle East. For the most part the markets remained bearish throughout. with both day-ahead power and gas losing 8% of their value, finishing the month at £104/MWh and 106p/therm respectively.

May saw some good news in the wholesale markets, with prices generally softening over the last month with winter 2026 gas contracts showing the biggest reductions. Since the end of March, day ahead and winter 2026 gas have both fallen by around 15%, largely driven by easing concerns over disruption to global LNG supplies and growing expectations that tensions in the Middle East may not result in prolonged restrictions to shipping through the Strait of Hormuz.

Across April both power and gas prices saw losses, with the most pronounced movements seen in contracts for delivery in the short term. Day-ahead power fell by approximately 9%, while gas declined by around 7%.

As we move into April, the state of the energy market could be much worse than it currently stands. At the beginning of the month, day ahead power was trading at £106/MWh, up from £97/MWh on 2 March, and gas was at 125p/therm up from 99p.

Despite the increasing tensions in the Middle East that dominated the news last week, day ahead prices closed the month of February a solid 25% lower than the previous month. Power traded at £76.5 MW/h and gas was 79 p/th, although at the time of writing, power had fully recovered its February losses and gas was 20 p/th higher than its previous record for the year to date.

January experienced heightened volatility in the wholesale market following a comparatively stable 2025.

At the start of December prices were still on a downward trajectory as seasonal temperature predictions continued to be above normal. By the end of the month, day-ahead power had continued its bearish momentum, finishing on £45MW/h down from £76MWh, as strong wind output and lower demand added pressure.

At the end of the November day-ahead prices closed £15 MWh, up on the month start at £76.75, as colder weather and seasonal uncertainty took its toll. There was good news for the most part however with recent developments in the Ukraine peace talks helping to ease prices down for contracts next year.

Day ahead prices for power closed the month as they started on around £80/MWh which set the tone for much of the price markers in September, with the market trading sideways for all contracts out from Winter '25.

Day ahead prices for power closed the month as they started on around £80/MWh which set the tone for much of the price markers in September, with the market trading sideways for all contracts out from Winter '25.