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UK Monthly Energy Market Review: January 2024 Gas & Power Trends

Monthly Energy Market Overview: January 2024

Welcome to our in-depth analysis of January 2024 monthly energy market report in the UK's gas and power markets. As highlighted in our banner above, this month has been one of contrasts, with the gas market experiencing a subtle increase of 0.90%, suggesting a cautious yet upward trend. In contrast, the electric market has seen a significant decrease of 23.44%, reflecting the impact of various influencing factors. This month indeed witnessed a fascinating interplay of rising and stabilising prices, offering valuable insights into the energy sector's dynamics.

Monthly Wholesale Market Update banner showing a 0.90% increase in the Gas Market and a 23.44% decrease in the Electric Market, with the Smart En. Co. logo prominently displayed.

Gas Market Overview:

  • Initial Surge: The year began with a sharp increase in gas prices, reaching a peak of 89.00p/th on 05/01/2024. This surge was driven by stronger demand forecasts due to an anticipated cold spell, alongside limited exports and increased imports, which tightened the market balance.

  • Mid-Month Stabilisation: Following the peak, prices stabilised, with the lowest point at 65.60p/th on 23/01/2024. This period of stability was influenced by a combination of factors, including strong LNG sendouts, a decrease in demand due to milder temperatures, and robust supply from storage withdrawals.

  • End-of-Month Increase: Towards the end of January, prices began to rise again, closing at 74.90p/th on 31/01/2024. This increase was largely due to a drop in temperatures leading to higher demand, coupled with a decrease in LNG sendout and nuclear output.

Electricity Market Overview:

  • Start of the Month: Electricity prices started at £80.00/MWh on 02/01/2024, influenced by high wind generation and the return of nuclear capacity, which kept prices stable despite fluctuations in the gas market.

  • Mid-Month Trends: Throughout January, electricity prices saw variations due to changes in wind generation and power generation dynamics, with significant price movements mirroring those in the gas market.

  • Closing Figures: The month concluded with electricity prices at £67.00/MWh on 31/01/2024. The decrease in prices towards the end of the month was influenced by a combination of higher wind speeds, increased nuclear generation, and a bearish gas market.

graph to show wholesale market movements in the month of January 2024

Detailed Market Comparisons:

After delving into the specifics of the gas and electricity markets, let's look at the numbers side by side. The image below presents a clear comparison of day-ahead prices as of the first day of 01st February 2024, juxtaposed with the previous month and the same date last year, showcasing both the monthly and yearly changes.

Key Takeaways:

  • Gas Market: The gas market's initial upward trend, followed by stabilisation and a concluding rise, highlighted its sensitivity to various factors.

  • Electricity Market: The electricity market, while influenced by gas, also responded to unique factors, underlining the complexity of energy markets.

Concluding Insights:

January 2024 was a testament to the volatile and dynamic nature of the UK's energy market, driven by a diverse range of influencing factors.

Forecast for the UK Energy Market: February 2024

  • Gas Market: Based on January's trends, we anticipate continued volatility in the gas market. Factors to watch include weather-driven demand changes, LNG cargo arrivals, and European gas storage levels.

  • Electricity Market: The electricity market is likely to be influenced by renewable energy outputs, especially wind generation, and the interplay with gas market trends.


Energy Market Averages


GAS (pence per therm)

ELECTRIC (£ per MWh)

Last 7 Days



Last Month



Last Year




Last 12 month market movements

As we examine the broader trends, this graph provides a retrospective look at the last 12 months in the monthly energy market. It charts the day-ahead wholesale prices for gas and electricity, illustrating the volatility and trends that have shaped the market over the year.


Understanding the energy market can be complex, but it's crucial for making informed decisions about your energy needs. That's where we come in. At The Smart Energy Company, we're committed to helping you navigate the energy market with ease. Whether you're looking to renew your energy contract or switch providers, we're here to help.

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