The end of the year saw forward price curves prices for power fell to the lowest levels seen since 2018 due to a combination of mild weather, falling gas and EU carbon prices. The signing of a new Russia – Ukraine gas transportation agreement also put pressure on electricity prices.
Record LNG imports and mild weather helped to keep day ahead prices around 30p/therm. December saw the UK receive 29 deliveries totalling around 2.8bcm. Prices could have fallen further if it was not for higher than normal continental storage utilisation, this being primarily driven by the transition in Russian gas through the Turk pipeline.
Given that the election has been finalised and many aspects of Brexit decided it is hoped that the value of the £ will help keep UK prices low into Q1 of 2020.