Overview of October’s Energy Market
The UK energy market in October 2024 faced significant changes, with rising prices for gas and electricity driven by colder weather, geopolitical tensions, and supply challenges. In this report, we’ll provide clear, actionable insights into these trends and explore how they affect businesses like yours.
Key Highlights for October 2024
Gas Prices: Averaged 98.69 p/therm, a 5.73% increase from September.
Electricity Prices: Averaged £88.05/MWh, a smaller 0.86% increase compared to September.
Oil Prices: Brent crude averaged $75.13 per barrel, reflecting a turbulent month shaped by geopolitical tensions and fluctuating global demand.
Geopolitical Risks: Ongoing conflicts in the Middle East added volatility to energy and oil markets globally.
Colder Weather: Increased heating demand drove higher prices for gas and electricity.
Gas Market Overview: UK Energy Market October 2024
What Happened?
Gas prices saw a sharp rise in October, with day-ahead prices peaking at 106.89 p/therm on 29th October. Key factors driving this increase include:
Colder Weather: With temperatures dipping below seasonal norms, demand for heating surged.
Geopolitical Tensions: Continued unrest in the Middle East heightened concerns about global supply chains.
Supply Constraints: Norwegian pipeline maintenance and unplanned outages led to fluctuations in supply.
Gas Price Summary
Average Price: 98.69 p/therm
Highest Price: 106.89 p/therm (29th October)
Lowest Price: 93.70 p/therm (1st October)
Power Market Overview: UK Energy Market September 2024
What Happened?
Electricity prices experienced smaller increases, driven by reduced wind generation and rising gas-for-power demand.
Lower Wind Generation: Slower wind speeds throughout October meant less renewable energy, increasing reliance on gas-fired power plants.
Colder Weather: Increased electricity demand for heating pushed prices higher.
Gas Price Influence: Fluctuations in gas prices fed directly into electricity costs.
Electricity Price Summary
Average Price: £88.05/MWh
Highest Price: £109.50/MWh (28th October)
Lowest Price: £64.75/MWh (18th October)
A Year in Review: Energy Market Trends (Last 12 Months)
The UK energy market has experienced considerable volatility over the past year, driven by a combination of geopolitical risks, weather patterns, and global supply-demand dynamics. Here's how day-ahead wholesale prices have moved over the last 12 months:
Gas Prices
October 2023: ~85 p/therm
Peak: 108.25 p/therm (March 2024, driven by winter demand)
Trend: Prices eased in the summer but surged again in October 2024 due to colder weather and geopolitical risks.
Electricity Prices
October 2023: ~£87/MWh
Peak: £142/MWh (November 2023, due to high gas-for-power demand)
Trend: Similar to gas, electricity prices saw relief in summer before rising again in October.
To provide a clearer picture, this graph highlights the day-ahead wholesale price movements for gas and electricity over the last 12 months, illustrating the upward trajectory as we head into the colder months.
Oil Market Overview: October 2024
What Happened?
The oil market faced significant volatility, largely influenced by geopolitical tensions in the Middle East and fluctuating global demand.
Geopolitical Risks: Concerns over potential supply disruptions due to the Israel-Iran conflict drove early price increases.
China’s Demand Weakness: A slowdown in China’s economy and falling oil imports weighed heavily on global demand.
U.S. Inventories: Unexpected increases in U.S. crude stockpiles in mid-October added further downward pressure on prices.
Oil Price Summary
Average Brent Price: $75.13 per barrel
Highest Price: $78.05 per barrel (7th October)
Lowest Price: $71.12 per barrel (30th October)
What This Means for Businesses
With gas and electricity prices rising, businesses are facing increased operational costs. By staying informed and working with a trusted energy partner, you can secure better rates and protect against future price volatility.
Looking Ahead: November 2024 Forecast for the UK Energy Market
As we move into November, here are the key factors to watch:
Colder Weather: Early forecasts suggest below-average temperatures, which could further increase energy demand.
Renewable Output: Improved wind speeds later in the month could help ease electricity prices.
Geopolitical Uncertainty: Continued tensions in the Middle East may keep energy and oil markets volatile.
Client Success Story
"I've worked with a lot of energy brokers and unfailingly they just want a quick transaction after a 5-minute call. The Smart Energy Company sent us weekly pricing and shared sector insights for several months before we signed paper. How could we use anyone else? Also, they found the best pricing. We did check."
Chris DuCousso, Director, Gym Owner
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