Day ahead prices go up as we use more gas

Day ahead gas prices rebounded on Tuesday reversing some of the losses posted in the previous session.

During morning trade, contract prices continued to fall throughout the session before swiftly changing direction in late afternoon trade with key contracts rallying (and closing) above Monday’s closing levels.

The Summer-24 contract settled circa 0.1p/kWh above its previous settlement, potentially influenced by higher gas demand and a 14% increase in CCGT offtake (combined-cycle gas turbine). According to data from National Gas, forecast demand moved up by circa 1.5% day-on-day, likely driven by a drop in wind and solar generation which subsequently prompted a larger dependency on gas-fired generation.

However, upward pressure was perhaps subdued by considerable losses posted on the oil market which likely helped to keep a lid on further gains being made. Data from ICE shows the Brent Crude benchmark contract shed $3.5/barrel on Tuesday, the largest drop in a single session since the 4th of October and plummeting to its lowest close since 21st of July.

This morning, day ahead gas prices have opened in negative territory; the December-23 front-month contract last traded around 0.1p/kWh below its previous close at time of writing.

It’s really windy today and if we check the latest half hourly period at the time of writing (13:00 – 13.30), 44.17% (17.36 GW’s) of the total electricity (37.05 GW’s) being generated in the UK is coming from wind generation with gas at a close second at 13.21% (5.19 GW’s).

If you want to see more information on the wholesale market trends subscribe to our weekly report here.

Back to the Latest News

Our Supplier Panel

The Energy Advice Line is the UK's leading online price comparison and switching service dedicated to small and medium sized businesses in the UK.

Our online quotation engine has been designed to facilitate speedy but accurate commercial electricity and gas prices – all at the click of a button to allow you to search the market for the lowest prices from an extensive panel of suppliers and contract options.

Customers Love Us !

Say 'No' to cold calling on business energy

Unfortunately, business electricity and business gas customers in the UK are bombarded with unsolicited cold calls on a daily basis.

This unscrupulous approach does not offer the business energy customer an impartial view on the market and the price offered is more often 20-30% above the current retail price for electricity or gas.

At Energy Advice Line we strongly advise customers to not accept these offers and follow our simple steps to ensure that they are not locked into an uncompetitive contract.

Join our cold calling campaign here, and spread the word to say 'no' to cold calling on business energy!

Say No To Cold Calling on Business Energy