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The latest energy outlook explained
Welcome to this edition where we delve into the first quarter of 2024. Discover the most up-to-date insights on energy price fluctuations and gain valuable perspectives on non-commodity expenses. Use this knowledge to shape your strategic energy planning for the future.
Business sentiment over prospects for the year ahead is more optimistic, with three out of four major confidence surveys showing improvements in Q1-24 compared to the last three months of 2023.
Wholesale energy markets over the first quarter of 2024 continued their downward trajectory, as fears of a cold winter subsided, UK and European gas storage facilities remained well stocked, and LNG cargos continued to arrive in Europe (1 & 2).
A customer’s energy bill is made up of much more than just the cost of the raw energy and supplier costs – indeed these typically make up only half of a typical energy bill (1).
The remainder of the bill is made up of a wide range of cost components that directly pay towards the maintenance, security and development of the energy infrastructure that is essential to delivering energy to customers’ homes and businesses.
Electricity generation from renewable technologies in Q1-24 nearly matched the highest quarterly figure set in Q4-23 of 32.26 TWh, but renewables’ share of the UK power mix increased to a record 51.2% (1).
For the second consecutive quarter, wind remained the principal source of UK electricity with a share of 34% this quarter, 1ppt lower than in the last three months of 2023.