Energy Market Update: 2nd - 6th June 2025

With markets bouncing between soft fundamentals and tighter supply, this week brought a mix of short-term price pressure and longer-term risk signals. While wholesale gas steadied, electricity pricing saw an unusual dip mid-week before correcting — a clear reminder that not all price drops reflect real-world contract value.

📅 Note: A major anomaly on 3rd June sent day-ahead electricity prices sharply down to £27.75/MWh. While eye-catching, this was not reflective of wider market movements and has slightly skewed week-on-week averages.

📊 Weekly Energy Market Recap

🔎 Quick Snapshot

• Day-Ahead Gas finished at 86.00 p/th ↑ (+1.78% vs previous week)

• Day-Ahead Power closed at £70.96/MWh ↑ (+25.50% vs previous week)

• Weekly Averages:
  • Gas: 83.09 p/th ↓ (from 86.59 p/th)
  • Power: £60.03/MWh ↓ (from £62.83/MWh)
  ⚠️ Skewed lower due to the 3rd June anomaly.

📅 5-Week Price Trend

Note: Power prices in early June were artificially depressed by a one-off drop mid-week — underlying pricing remains closer to the £70–£80/MWh range.

🔍 Market Overview

🔹 Gas: Storage Steady, Supplies Tight

Gas held relatively firm this week. Ongoing maintenance in Norway and a slowdown in LNG arrivals have kept supply tight, but muted demand and mild weather have helped balance the market.



🔹 Power: Anomalous Dip, Then Recovery

Electricity pricing dipped dramatically mid-week — a rare, short-lived anomaly — before climbing back. Fundamentals remain largely unchanged, with reduced renewables and limited imports tightening the near-term picture.

📊 Weekly Prices at a Glance

📌 Key Factors This Week

⬇ Soft Fundamentals

• Below-seasonal UK gas demand & strong wind generation capped upside
• Solar output dipped slightly, but short-term demand remained manageable

⬆ Tight Supply

• Maintenance at Troll & low LNG send-out pressured the system
• UK grid consistently long, but Langeled flows dropped sharply



🌍 Geopolitical Watch

• Russian conflict & US-China trade uncertainty back in headlines
• Tariff policy discussions ongoing, with possible impact on oil and gas flows

💼 What This Means for Your Business

🔻 Contracts Ending Soon (0–3 Months)

Lower power prices mid-week offered opportunity — but were not reflective of actual quotes. Always benchmark with real contract offers.

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

Longer-dated pricing holding steady. Gas contracts remain above 80 p/th; electricity quotes largely in the £70–£80/MWh range.



🔒 Long-Term Renewals (6–24 Months)

Winter-25 and beyond continues to show pricing risk. Fixing early still recommended if budgets require certainty.

👉 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 continues to hover in the 80s, while power prices saw a temporary distortion this week.

🔭 Next Steps

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

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🔭 Looking Ahead

• Maintenance expected to persist across June, keeping supply constrained
• Wind forecast improves after next week — could ease pressure on power
• Watch for demand upticks with warmer weather or geopolitical shocks
  

💡 Final Thoughts

Despite last week's pricing dip, the overall market remains stable — but sensitive to supply disruptions. Now’s a great time to explore your options and see where you stand.