top of page
Keyboard and Mouse

16/05/2022 - Weekly Wholesale Market Update

This morning, the Electric wholesale (Day Ahead) prices have opened up 43.02% Higher than this time last week with Gas (Day Ahead) increasing by 115.91%.


Weekly Report


On Day Ahead pricing, UK energy experienced a stronger conclusion to the week, with the lowering temperature and renewable generating estimates adding premiums to the cost of gas and, thus, electricity.


However, since European gas and power prices fell, all other contracts from next month to year lost value. It's good news that Germany hopes to reduce sanctions by making payments in euros before converting the currency, which will keep Russia's gasoline flowing. Other countries' announcements that they now have energy measures in place that remove them from Russian reliance lessens danger as well.


The larger fuels complex, which includes crude oil, coal, and LNG, has been losing ground week after week: last week had a bearish start and close, but hump day advances made it look like we were getting more costly at one point. The integrally connected emissions trading systems (Euro and UK carbon permits) both lost value at the lower close.


This week, Week20, sees a drop in renewable generation from Monday to Wednesday, which is also when the weather begins to chill. A few LNG ships should dock on our beaches this week, but any unanticipated interruptions to UK and Norwegian gas/oil infrastructure on the North Sea continental shelves, as well as the inevitable geopolitical Ukraine-conflict rope-a-dope, might see risk margins return to pricing.



Daily Report


While the fuels mix ended the week lower than Week19, crude oils and euro-carbon were supported on Friday when the EIA Gov't released US oil inventory data showed an 8 million barrel increase against a 0.5 million barrel reduction! This lack of demand contrasts with the fact that US gasoline and natgas prices are at multi-year highs!


In Europe, demand for dirty burn coal has dropped recently, but it remains near inflated levels because it was viewed as a potential alternative to gas while Russian supplies were rightfully reviled. We were stripped of $12/Mt [4.9 percent] to get to 4232.25/Mt.


Colder temperatures and lower renewables aided the prompt, while front-month discounts were seen on Friday (NBP down 27.1p/th [15.4 percent]). As a result, everything from seasons to annuals was losing 5%. The fact that some of the artificial gains on S-23 came away more than near winter moves was particularly pleasing.


Despite an unanticipated outage at Kollsnes due to compressor failure, the Dutch TTF is down €4.38 [4.5 percent] after opening flat. The NBP equivalent appears to be falling. In Germany, the applicable power contract is trading 3% lower, and MA trading is currently limited due to France's nuclear curtailments.


W-22 is already showing signs of weakness, with a 3p/th [1.2 percent] loss on the NBP and an implied offer of 3.5 percent below the close on UK BSLD.


Global economic fears, sparked by disappointing Chinese retail data, partly due to the lockdown, and falling European markets, imperil fuel demand and oil forecasts. Even after a slightly better open, Brent is trading at a discount, but EUAs add marginal value, and ubt remains well below the 90 mark.



How the market has opened each day:


Date Electric (£/MWh) Gas (p/therm)

09/05/2022 86.00 44.00

10/05/2022 70.00 60.00

11/05/2022 76.00 47.00

12/05/2022 82.10 62.10

13/05/2022 100.10 60.10

16/05/2022 123.00 95.00


7 day averages


Electric (£ per MWh) 89.53

Gas (pence per therm) 61.37


The below shows how the market compares to the previous week, month and year.






When will you look at your next renewals? Get your free quote today.


Get in touch to see what is available for your next renewals. 0151 459 3388



21 views0 comments

Comments


Keep Up To Date With Market Updates

technological-devices-with-financial-reports.jpg

Securing your next energy contract at the optimum moment is essential for fully realising your savings opportunities. Provide your details below to gain access to weekly market updates, giving you the advantage to make informed purchasing decisions at the right time.

 

Bid farewell to aggressive sales approaches from other brokers and take charge with confidence!

You're Subscribed! Look out for your first report soon!

Have More Questions?

  • Is it possible to change multiple business utilities at the same time?
    Our switching service allows you to switch multiple utilities simultaneously. We have successfully assisted multiple businesses in the UK by helping them save on various services such as energy and water with savings within 2023 already over the £2 Million mark.
  • How much can I save on my business utility bills?
    The amount you can save on your business utility bills will depend on various factors such as your current usage, the rates offered by different providers, and the specific deals available in your location. However, our switching service is designed to help you find the best deals and save as much as possible. By comparing multiple suppliers and negotiating competitive rates, we aim to maximise your potential savings. Get in touch with us to discuss your specific needs and get personalised information on potential cost savings for your business utility bills.
  • How does switching business utilities work?
    Switching business utilities involves a straightforward process. Here's a general overview of how it works: Evaluation: Start by assessing your current utility bills and usage patterns. This will give you an idea of your current costs and help identify areas where savings can be made. Comparison: Use a switching service like ours to compare different utility providers in your area. We provide you with quotes from multiple suppliers, allowing you to compare prices, contract terms, and services offered. Selection: Based on the comparison results, choose the utility provider that best meets your needs and budget. Consider factors such as price, customer reviews, contract terms, and any additional services or benefits offered. Contract Negotiation: Once you've chosen a new provider, our team can help negotiate the contract terms and rates on your behalf. Switching Process: The switching service will coordinate the transition with your current supplier and the new provider. This may involve submitting termination notices, arranging meter readings, and scheduling the activation of new services. Enjoy the Savings: After the switch, you'll start receiving services from your new provider, typically at the agreed-upon rates. You will notice savings on your utility bills, providing you with cost advantages for your business. Remember, the exact process may vary depending on the type of utility you are switching, but our switching service aims to simplify the process and assist you at every step.
  • Who are the cheapest business utility providers?
    As market conditions and prices fluctuate regularly, it's challenging to provide an up-to-date and definitive list of the cheapest business utility providers. The prices we provide you are valid and available on the day of the quote and will provide most current and competitive deals available. Our switching service helps you compare prices and offers from multiple suppliers, ensuring you have the most accurate and relevant information to make an informed decision about your business utility provider.
  • What is energy procurement?
    Energy procurement is the process of sourcing, negotiating, and securing energy contracts to meet the specific needs of a business. It involves analysing energy consumption patterns, understanding market trends, and negotiating with suppliers to obtain the best possible rates and contract terms.
  • Why is energy procurement important for my business?
    Energy procurement ensures that your business secures energy contracts that are both cost-effective and aligned with your operational needs. Proper energy procurement can lead to significant cost savings, budget predictability, and reduced risks associated with volatile energy markets.
  • How does The Smart Energy Company help with energy procurement?
    We specialise in analysing your energy consumption, understanding your specific needs, and leveraging our relationships with over 20 suppliers to negotiate the best possible contracts on your behalf. Our team ensures you get optimal rates, flexible terms, and contracts that align with your business goals.
  • How do you ensure I get the best energy rates?
    Our team continuously monitors the energy market, staying updated with trends, price fluctuations, and supplier offerings. Coupled with our in-depth analysis of your energy needs and consumption patterns, we negotiate with suppliers to secure rates that are both competitive and suited to your business.
  • Are there any hidden fees associated with your energy procurement services?
    Transparency is a core value at The Smart Energy Company. We provide a clear breakdown of any commission we earn as a company when you come to agree any new energy contract. This is typically included as an uplift in your unit rate and paid to us by the supplier you chose to go to. Our primary goal is to secure the best energy deals for you, with no hidden costs.
Business Meeting

Unlock the Potential of
Your Business Energy

At The Smart Energy Company, we're committed to offering tailored solutions that fit your energy needs perfectly. By staying ahead of market trends, we ensure you're always equipped with the most efficient and sustainable energy options. We take pride in our client-driven approach, where your feedback shapes our continuous improvement.

 

Why not schedule a complimentary consultation with one of our energy experts today? Let's find the perfect energy solution tailored to your business.

See What Our Clients Say About Us

1828884.png
1828884.png
1828884.png
1828884.png
1828884.png
56937_edited.png

Very helpful, quick expert advice. We have been using Smart Energy for a while.

56937_edited_edited.png

Ian Hughes

Operation Manager

Group of Bars

bottom of page