Smart Energy Insights
Energy Insights
Thomas McGlynn • 27 May 2025

Energy Market Update: 19th - 23rd May 2025

Gas and power prices climbed again last week, rising for a second week in a row as Norwegian maintenance continued and political uncertainty lingered. Here's what moved the market and what it means for your next contract.

A weekly energy market recap from smart energy company

📊 Weekly Energy Market Recap


⚡ Quick Snapshot


  • Day-Ahead Gas: Up from 79.36 p/therm to 85.72 p/therm


  • Day-Ahead Power: Rose from £77.63 to £85.89/MWh



  • Both markets reached new 6-week highs, led by lower Norwegian flows and geopolitical risks

📅 5-Week Price Trend

Week Ending Avg Gas (p/th) Avg Power (£/MWh)
23/05/2025 85.72 £85.89
16/05/2025 79.36 £77.63
09/05/2025 82.14 £83.91
02/05/2025 76.39 £77.68
25/04/2025 84.07 £86.25

📈 Prices are now firmly back on an upward trajectory after a brief drop mid-May.

📉 Market Overview


📌 Rangebound to Rising

Markets opened quietly but surged midweek as Norwegian gas flows dipped sharply and peace talks between Russia and Ukraine fell flat.


🌍 Political Influence

A phone call between Trump and Putin failed to yield progress, while U.S. senators proposed new penalties on Russian trade. Sentiment remains sensitive to headlines.



🧊 Weather & Storage

Slightly cooler temperatures and strong gas storage targets in the EU (~45%) added to bullish pressure.

📊 Weekly Prices at a Glance

Gas (Day-Ahead) Power (Day-Ahead)
Highest 89.80 p/therm (21/05) £88.58/MWh (23/05)
Lowest 80.25 p/therm (19/05) £84.08/MWh (19/05)
Weekly Average 85.72 p/therm £85.89/MWh
Change vs Last Week 🔺 +8.0% 🔺 +10.6%

🔍 Key Factors This Week


🟨 Soft Fundamentals


  • 📉 Norwegian gas flows hit a low due to Kollsnes maintenance
  • 🌡️ Weather cooled midweek, raising gas-for-heating demand
  • 🔋 EU storage hit 45%, still behind seasonal average


🌍 Geopolitical & Trade Headlines


  • 🧾 Failed Russia–Ukraine peace talks dragged on
  • 📞 Trump–Putin call offered no breakthrough
  • 🇺🇸 New U.S. legislation proposed trade penalties on countries buying Russian energy
  • 🌏 LNG demand in Asia picked up, raising competition for supply

📣 What This Means for Your Business


🔹 Contracts Ending Soon (0–3 Months)

Now is a sensible time to fix. The market has been climbing and recent dips are being erased. Locking in now could protect you from any further short-term spikes.


🔹 Contracts Ending Mid-Term (3–6 Months)

Request a quote and set a trigger point. You may want to wait — but prices are rising, and a dual quote (for now vs. later) can help you make a clear choice.



🔹 Long-Term Renewals (6+ Months)

No rush, but monitor closely. If we see another Norwegian outage, or if peace talks fall apart, prices could creep up. Set price alerts and review quarterly.

👉 Avoid paying more than you need to.

If your contract’s due soon, now could be a smart time to get a fixed quote while prices are still below winter highs.

📈 6-Month Energy Market Trends


Gas and power prices bounced sharply after weeks of sideways movement.
We’re now seeing prices at their highest since late March.



📈 Gas is nearing 90 p/therm again, a level last seen in mid-Q1.
📈
Power is back near £90/MWh, driven by supply fears and tightness in LNG and renewables.

A graph showing a wholesale market report for the last 12 months

🔭 Next Steps

Ready to Lock in Better Rates or Stay Ahead of the Market?

Our experts monitor global energy movements so you don’t have to—take control now.

🔮 Looking Ahead


  • 🔧 Norwegian flows expected to return to normal — could ease pressure
  • 🧊 Cooler weather across Northern Europe may increase short-term demand
  • 📅 All eyes remain on whether any progress will be made on Russia–Ukraine peace
  • 🧾 New U.S. sanctions could spark more volatility depending on timing

🤝 Final Thoughts


The market continues to react more to politics than physical shortages.
But prices are clearly rising, and the risk of doing nothing is growing.


If you’ve got a renewal due before summer — now is a good time to review it.

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