UB's Pricing Guidance Report - Flipbook - Page 1
Pricing Guidance Report
What factors are influencing new
contract prices?
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•
•
Wholesale Gas Prices
5
Wholesale Price (p/kWh)
•
Falling temperatures are easing cooling demand, helping to
lower electricity prices.
Wind generation is increasing, reducing the need for
gas-fired power generation.
EU gas storage is improving but still lags behind previous
years, keeping pressure on injections.
Geopolitical uncertainty from Russia–Ukraine ceasefire talks
continues to drive market risk.
Upcoming Norwegian gas outages may tighten supply and
support higher prices.
Wholesale Price (p/kWh)
•
Wholesale Electricity Prices
12
10
8
6
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
4
3
2
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Month
Business Electricity
Month
Business Gas
Short-Term Contracts
Short-Term Contracts
Power prices are likely to fall in the short
term as cooler temperatures reduce
demand for air conditioning and wind
generation is forecast to rise, easing
pressure on gas-fired generation and
conventional power supply.
Gas prices are likely to fall in the short
term as lower temperatures and rising
wind output reduce the need for gas in
electricity generation. Improved EU gas
storage levels also ease immediate
supply concerns.
Long-Term Contracts
Long-Term Contracts
Electricity contracts are expected to
remain relatively flat, as markets await
clarity from ongoing Russia-Ukraine
ceasefire talks. With no firm resolution
yet and geopolitical uncertainty
lingering, long-term prices are stable but
sensitive to developments.
Long-term gas prices are expected to
remain relatively flat, with markets
closely monitoring ceasefire negotiations
and potential outcomes. While progress
would boost energy security, any
setbacks or sanctions could increase
future risk premiums.
= Price Increase
= Price Decrease
= Neutral
Summary
Business energy prices are currently under downward pressure in the short term due to falling temperatures reducing demand for cooling, and
increased wind generation lowering the reliance on gas-fired power. Improved EU gas storage levels are also helping ease immediate supply
concerns. However, in the long term, prices remain relatively flat but sensitive to ongoing geopolitical uncertainty, particularly around
Russia–Ukraine ceasefire talks, and potential risks from supply disruptions such as Norwegian gas outages or future sanctions.
UB Experts Recommend...
Energy prices can be drastically impacted by both international and domestic factors. Understanding these factors and knowing how they may
affect costs to your business could help you save money in the long term. Speak to one of our business energy experts and find out exactly how
your business should approach the current market.
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Disclaimer: The views expressed in this email are those of Utility Bidder and do not guarantee certainty in market movements. Our analysis is based on information from reputable sources, such as Ofgem, Zenergi, and other trusted
energy news outlets. Energy prices are highly volatile and may fluctuate after the date this Pricing Guidance Report was issued.
