Energy Market Update: 27th - 30th May 2025
With a shorter trading week due to the late May Bank Holiday, wholesale energy markets saw some sharp daily movements — especially in electricity — but forward prices stayed relatively steady, suggesting retail contract rates may not yet reflect the full drop.
📊 Weekly Energy Market Recap
🔹 Quick Snapshot
- Day-Ahead Gas: 86.59 p/therm (🔺 -1.01% from last week)
- Day-Ahead Power: £62.83/MWh (🔻 -26.82% from last week)
- Today’s Open (03/06): Gas: 79.15 p/th | Power: £70.57/MWh
- Forward Pricing: Largely unchanged
- Notable Shift: Power saw its sharpest weekly drop in 12+ months
📅 5-Week Price Trend
| Week Ending | Avg Gas (p/th) | Avg Power (£/MWh) |
|---|---|---|
| 31/05/2025 | 86.59 | £62.83 |
| 24/05/2025 | 85.72 | £85.89 |
| 17/05/2025 | 79.36 | £77.63 |
| 10/05/2025 | 82.14 | £83.91 |
| 03/05/2025 | 76.39 | £77.68 |
🧾 Gas prices remain in a stable range. Power dropped sharply this week after strong renewable output and low demand.
📉 Market Overview
🔻 A Quiet Week for Gas
Prices fell back under 85 p/th by Friday, helped by warmer weather and higher Norwegian flows midweek.
🔌 Power Under Pressure
Electricity averaged just £62.83/MWh — the lowest since spring 2023 — driven by strong wind generation and low weekday demand.
📊 Weekly Prices at a Glance
| Gas (Day-Ahead) | Power (Day-Ahead) | |
|---|---|---|
| Highest | 88.50 (28 May) | £76.71 (28 May) |
| Lowest | 82.60 (30 May) | £56.54 (29–30 May) |
| Weekly Average | 86.59 | £62.83 |
| Change vs Last Week | 🔻 -0.27% | 🔻 -26.82% |
⚠️ Electricity saw a sharp drop this week – one of the steepest falls in recent months. Gas held steady, finishing slightly higher.
🔎 Key Factors This Week
🟧 Soft Fundamentals
- High wind output slashed power prices midweek
- Warmer weather and easing maintenance helped soften gas demand
- EU gas storage at ~47% — still well below 5-year average
🌍 Geopolitical Headlines
- Trump delayed 50% EU tariffs until July, reducing trade pressure
- Peace talks stalled as Trump–Putin deadlines passed with little progress
- U.S. weighing further Russian sanctions, but no fresh action taken yet
📣 What This Means for Your Business
🔹 Contracts Ending Soon (0–3 Months)
Power prices are at the lowest levels in over a year — now could be a great time to explore quotes.
🔹 Contracts Ending Mid-Term (3–6 Months)
Gas prices remain steady. Consider reviewing rates now if you're looking to avoid mid-summer volatility.
🔹 Long-Term Renewals (6+ Months)
Forward rates have stayed flat. If you're not due until Q4 or later, keep monitoring — prices may soften again if storage improves.
👉 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 both dropped last week. Power showed a much sharper decline, reflecting milder weather and low demand.
Gas continues to trade in the 85–90 p/th band, showing limited volatility compared to electricity.
🔭 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 fully recover post-maintenance
- EU gas storage remains a key watch point — still 10% behind seasonal norms
- U.S.–Russia tension remains unresolved, but not driving daily prices right now
- Power volatility could return if renewable output dips
💬 Final Thoughts
Last week’s drop in power was a surprise — and a clear opportunity for those close to renewal.
If you’re unsure, get a quote or sense-check your current deal.
No pressure — just smart timing.
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