This week has seen continued sharp increases in the wholesale cost of Gas & Power resulting in widespread withdrawal of both Corporate and SME prices. Since last Monday Annual Gas prices have increased 18% and Power 11%.
These increases have been supported by an increase in Oil prices and colder than seasonal norm temperatures. There have also been a number of Gas outages which is compounding the issue and feeding in to the forward curve. Withdrawals have been made from Rough storage at a time of the year when we may have been injecting in to storage.
Within the Power market there have also been a number of outages; this combined with colder temperatures and lower output for Wind generators has caused upward pressure on prices.
Brent Crude: $46.91 / Barrel
Annual Gas: 36.40 p / therm
Annual Power: £38.03 / Mwh
The speed and rate at which prices have increased has caused suppliers a number of issues. Where suppliers have been able to produce Corporate pricing it is often withdrawn just an hour or two later. The increases have also effected SME pricing with some suppliers taking the decision to withdraw their matrix prices.
Where you are able to obtain prices, we recommend you are prepared and able to make a quick decision to avoid missing out on the offers that you are presented with.
If you want more information about the wholesale market don’t hesitate to discuss with your Corporate account manager.