Energy prices have sharply decreased as milder weather, improving LNG supply, and falling carbon values pushed both gas and power markets down.
The UK became a net exporter of electricity to Norway, reversing the usual flow as low hydro levels in southwest Norway reduced available supply.
A sharp decline in carbon prices reduced generation costs for gas-fired power, adding further downward pressure to electricity prices.
Strong and consistent renewable output, particularly wind, supported supply and contributed to lower short-term prices, with the UK even exporting power to Norway during parts of the period.
Gas prices eased as temperatures turned milder and overall demand softened.
LNG deliveries to the UK increased, improving supply resilience compared to late January.
European storage levels remain lower than last year, but slower withdrawal rates and improving supply expectations have reduced immediate market pressure.
Looking ahead, forecasts for average to above-seasonal temperatures and expanding LNG capacity are providing reassurance to markets. However, storage levels and geopolitical developments will continue to influence price direction in the weeks ahead.
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