Wholesale energy prices were much more stable in April with lower demand helped by above average temperatures. Good supplies of Gas from Russia, LNG deliveries and imported Electricity from Holland and France, were the main factors contributing to a small decrease in prices. This means Wholesale prices remain very competitive for 12, 24 and 36 months.
With the result of the general election known, there should be renewed stability within the industry as Labour’s proposed plans to changes to the Wholesale markets and a Price Freeze, are not likely to be pursued.
We have now seen five months of very low and stable prices. Potentially we have reached the low point in the Wholesale markets. Although prices have been very resilient to supply pressures, potentially heading towards the winter without full Gas storage capacity could see both Gas and Electricity prices pushed higher especially if there are other concerns.
lpm recommend you consider contracting supplies ending 2015 and 2016.