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Energy markets in Europe have generally been positive over the last week, recovering from the low on the 11th July, albeit rather cautiously. With the exception of continued low off-shore wind generation, the market is well supplied and gas in storage in Europe is now just over 80% full. In the US, summer cooling demand has not been sufficient to prevent the build-up of large inventories, from which LNG exports can provide some relief. Still, prices there are coming down sharply.
In the UK today, the King’s Speech (click here for the full text) set out a summary of the Government’s legislative programme for the new parliament. There was a paragraph on energy oriented around the stated aim of committing to a "clean energy transition which will lower energy bills for consumers over time". This will involve bringing Bills to parliament in three areas:
- To set up Great British Energy, a publicly owned clean power company to accelerate investment in renewable energy, such as offshore wind, to be known as the Great British Energy Bill.
- Legislation to help the country achieve energy independence and unlock investment in energy infrastructure.
- A Bill will be introduced to support sustainable aviation fuel production via, judging by its stated name, a revenue support mechanism.
The second element is particularly intriguing and it will be interesting to see how the government plans to put energy independence into practice. There is no mention of the aim of a net zero-carbon electricity system by 2030 as described in the Labour party election manifesto. However, the government has appointed Chris Stark, who served as chief executive of the Climate Change Committee between April 2018 and April 2024, to lead Mission Control, in the Department for Energy Security and Net Zero, to deliver clean power by 2030. It is not made completely clear whether clean power by 2030 is the same thing as net zero-carbon electricity by 2030.
Commoditiy | Front contract (£p/therm) | Winter 24/25 (£p/therm) | Summer 25 (£p/therm) | Winter 25/26 (£p/therm) |
---|---|---|---|---|
Price | 73.77 | 94.31 | 87.81 | 95.83 |
Weekly Change | 2.56 | 1.56 | 1.06 | 0.90 |
Commoditiy | Front contract (£/MWh) | Winter 24/25 (£/MWh) | Summer 25 (£/MWh) | Winter 25/26 (£/MWh) |
---|---|---|---|---|
Price | 65.25 | 83.33 | 72.32 | 83.26 |
Weekly Change | 1.85 | 0.23 | 0.23 | -0.22 |
Commoditiy | US Gas ($/mmbtu) | Brent ($/b) | EUA (€/MT) | UKA (£/MT) |
---|---|---|---|---|
Price | 2.05 | 85.03 | 65.95 | 40.93 |
Weekly Change | -0.28 | -0.05 | -1.38 | -1.04 |
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