Coronavirus’s impact on the UK energy market: Free webinar


Here at EDF we are committed to providing customers with as much information as possible, on all aspects of their energy consumption.

The wholesale energy complex is ever-evolving and 2020 has been no exception as the coronavirus pandemic has sent shockwaves through the industry, significantly disrupting supply / demand balances. The devastating and potentially long lasting impact to global economies has filtered through to commodities, with uncertainty causing volatility across markets.

So what have we seen in the markets recently?

  • An already oversupplied global gas market has been further weighed down by mild temperatures this past winter and by severe demand destruction more recently as the pandemic caused countries to issue nationwide lockdowns. Asian LNG spot prices hit record lows through April, trading below $2/MMBtu, whilst European gas storage is c.20% fuller than normal at this time of year.
  • The front-month WTI oil contract plummeted into negative territory for the first time in history in April as traders scrambled to roll their hedges amid concerns storage was filling up.
  • European carbon has seen drastic swings, at one point losing almost 40% of its value in just 7 trading days.

All the above has played a big role in driving the UK power market. The chronic oversupply in the gas market, exacerbated by the coronavirus pandemic, has significantly pressured near-term contracts, with negative prices seen often in the prompt. Bearish sentiment has also filtered through down the curve, however, a reduction in French nuclear availability this winter and the easing of lockdowns / hopes of a quick economic recovery has added support.

After all that, you are probably wondering how you can stay on top of the wholesale energy price as it changes, especially in uncertain times like these?

Energy is a complex business, but hopefully we can make it simpler. You can keep informed on the changing prices through us at EDF. Join our free bi-monthly webinars on the UK Power Market with James Chaplin, Power & Gas Trader in the Portfolio Hedging team.

The next one is coming soon, on 10 June 2020 at 3pm. Don’t miss out! Sign up here.

In the meantime, watch James run through the factors that influence the wholesale price of power – what they are, how they work, and what to look for – in more detail.


Please enter your comment!
Please enter your name here