Electricity and gas prices moved down significantly over the course of June.
During the first half of the month prices saw a significant spike upwards as the standoff between Gazprom and Ukraine escalated again, with Gazprom giving an ultimatum for Ukraine to make payment for unpaid gas, giving a date for a cut if this was not forthcoming. However, when the cut did finally occur, prices actually fell back down as it became apparent that gas was still transiting through Ukraine to the rest of Europe and we continue to be very comfortably supplied by gas.
The level of gas supply coming into the UK continues to be the main driving factor behind prices, with ample LNG arriving into the UK whilst demand is depressed, with our gas storage now over 90% full.
This has had the main effect on the near term market, which has seen significant drops, while those further ahead have also moved down to a lesser extent.
The crisis in Iraq has caused oil prices to move upwards, but this has not had a major effect on our electricity and gas markets.
Please click here for the Glossary