Jun 1, 20232 min read

June 2023 UK Energy Market Update: Fluctuations in Gas and Electricity Prices amidst Increased Renew

Market Review

We are excited to provide you with the latest update of the UK energy market for the previous month up to 01/06/2023.

The UK energy market, including the wholesale gas price and electricity price, has seen fluctuations and competition among energy suppliers operating in the country. The price of natural gas, a significant fuel for electricity generation, slipped by 2.4% to 96.10 pence per therm in May, driven by LNG imports from Europe and favourable weather forecasts. However, the price of electricity decreased by 2.6%, with plenty of supply from renewable sources and reduced demand from homes and industries, lowering the average day-ahead price to £40.95 per MWh.

The UK government has taken bold steps to reduce the nation's carbon footprint, with ambitious goals of achieving net-zero carbon emissions by 2050. The country's renewable energy sector, particularly offshore wind, has significantly expanded to achieve this objective. With 24.2% of UK electricity coming from renewable sources in Q1-23, there has been solid progress with the greener energy mix.

The retail energy market in the UK has become fiercely competitive, with suppliers offering lower prices and discounts to win new customers. Additionally, the energy price cap introduced by the UK government sets controls on the maximum amount that energy suppliers can charge their customers, preventing overcharging.

In conclusion, the UK energy market has had a mixed performance over the past month, while the country's renewable energy sector's growth has been remarkable. With renewable energy sources' increasing share, reduced gas and electricity prices, and competition among suppliers, there is an encouraging outlook in the UK's energy sector.