Dukefield Energy provide first update of 2024

As CPC's exclusive energy consultant and sole supplier on our Department for Education-approved Utilities Supplies & Services framework, Dukefield Energy ensured our members remained informed across 2023 and we are pleased to continue working closely together into 2024.

Any organisations that have a utility contract that is up for renewal in 2024 are advised to get in touch with the team at Dukefield, who can help and support.

As shown in the graph below, gas and electricity prices are at a low for the past 18 months, thus customers with contracts up for renewal in the next year would be strongly recommended to look at arranging renewal of contracts. Contracting now will help protect against any subsequent rises and volatility in the market.

Outlook for gas

Falling... The United Kingdom now has 19 LNG cargoes confirmed for January, providing downward pressure to immediate contracts on greater supply and quicker replenishment of storage. Norwegian flows remain strong, sitting at 352mcm/d, providing downward pressure to the day-ahead gas contracts.

Rising... The UK currently has four nuclear reactors offline, adding upward pressure to gas contracts on increased demand for gas-for-power. Temperatures are sat below seasonal norms this week, increasing the demand for power-for-heating.

Outlook for electricity

Falling... Wind generation is sitting around seasonal norms this week, relieving some of the strain on the UK power stack. The UK is investing £300 million in a high-tech nuclear fuel program, which will provide downward pressure to future power contracts on greater supply and less strain on the UK power stack.

Rising... French flows have seen a decrease this week, sitting around 3%, supplying some upward pressure on limited supply. The 595MW facility, Hartlepool 1, has gone offline for unplanned maintenance, applying some upward pressure to day-ahead power contracts on additional strain to the same power stack.