top of page
Keyboard and Mouse

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

Monthly Energy Market Overview: March 2024


Welcome to our breakdown of March's energy market in the UK. It's been a month of notable twists and turns, and we're here to unpack it all in terms you can easily understand. So whether you're about to renew your energy contract or simply keeping a tab on the market, we've got you covered.


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: The Ups and Downs Explained


Let's dive into the gas market first. We kicked off March slightly down from February's close, with prices at 67.35p/th. The weather threw us a curveball with an early warm spell, nudging prices to a comfortable low of 62.65p/th around mid-month. However, this was short-lived as prices jumped to 75.20p/th by the 19th. Why the spike, you ask? A double whammy of a tight squeeze in the North Sea gas supply coupled with a surge in electricity generation demands, thanks to less-than-ideal wind conditions, sent prices climbing.


Electricity Market: Climbing the Current


Electricity prices began at a steady 69.50 £/MWh. Yet, they ascended alongside the gas market, peaking at 75.00 £/MWh due to the ripple effect of high gas prices and a drop in wind energy output. Thankfully, the month ended on a brighter note, with a dip to 60.50 £/MWh, thanks to the winds picking up again and gas prices easing off a tad.


Decoding the Market Movements

Now, why such a rollercoaster? Here's the simple breakdown:


  • Warmer Weather: This usually means we don't crank up the heating, easing the demand for gas.

  • Supply Snags: Hitches in North Sea gas extraction can cause prices to jitter.

  • Renewables' Role: Less wind leads to more reliance on gas, pushing electricity prices up.


A Picture Worth a Thousand Words


Before we move on, let's talk visuals. Take a look at the attached 6-month wholesale market movement snapshot. It's a revelation compared to last year's figures, with electricity prices down a striking 50.21% and gas prices not far behind with a 49.18% drop. This dramatic year-on-year decline is a stark reminder of the impact of market forces, policy changes, and global events on energy prices.


snapshot of today's energy prices clearly, showing how they compare to yesterday, last week, last month, and last year.

Wrapping Up March

As March bids adieu, it leaves us pondering the market's fluctuations. From the gas market's final uptick to the electric market's overall decline, it's been an intriguing month that underscores the importance of market vigilance.

 

Energy Market Averages

DATE

GAS (pence per therm)

ELECTRIC (£ per MWh)

Last 7 Days

68.70

64.33

Last Month

68.64

66.10

Last Year

83.89

82.65

April's Energy Market Outlook

For April, we anticipate a steadier gas market as the seasonal need for heating reduces. On the electricity front, if the winds are generous, we could see prices stabilising. However, it's good to remember that forecasts are just educated guesses—nothing's set in stone.


 

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.


graph to show last 12 months wholesale market movements

 

Oil Market Movements in March 2024

March's oil market has been a rollercoaster, illustrating just how dynamic global events can influence energy costs. Let's unpack the happenings and see why savvy watchers keep a keen eye on the oil beat.


Market Peaks and Valleys

March kicked off with oil prices inching up, as traders weighed the impact of OPEC+ supply cut agreements. Brent crude soared over $84/bbl but then dipped to $81.20, showcasing the market's push-pull dynamics. But it wasn't just about agreements and numbers. Geopolitical tensions and economic recoveries from inflation played their parts in this energy dance, with U.S. production records stirring the pot even more.


Mid-month, oil prices got a shot in the arm from Saudi Aramco's price hikes to Asia and Red Sea tensions escalating due to Houthi rebel activities. This geopolitical tightrope saw Brent crude nudging to $82.96/bbl, and WTI to $79.13/bbl.


Behind the Volatility

Several factors tossed the market waves this month. OPEC+ supply cut extensions and geopolitical unease were the main actors, nudging prices upward. But whispers of ceasefire talks between Israel and Hamas threatened to ease the market's climb, suggesting a smoother oil flow might be on the horizon.


What's Next?

For April, the oil market's looking at a potential cool-down as global demand levels find their new normal and OPEC+ decisions filter through the markets. But keep an eye out for the winds of change—they're always ready to rewrite the script.


With March closing out, we see oil prices leaping over $1/barrel. This uptick is fed by hopes that OPEC+ might hold steady on production cuts, amidst the backdrop of continued attacks on Russian energy infrastructure. It's a complex web of supply, demand, and geopolitical intrigue that keeps the market on its toes.

April, we're watching you!


 

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.


Don't miss out on potential savings and better energy deals.




For more information or a detailed energy quote, contact us at 0151 459 3388. Let us empower your future with smarter energy solutions



65 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