2024 Review By Adam Novakovic In a year that began with falling energy prices, there were recurring catalysts that led to prices climbing steadily higher. Geopolitical uncertainty and the perennial threat of escalating conflicts meant fear would maintain a constant presence in the wholesale markets. We will look back at the key energy stories from 2024, and how the energy markets are likely to shape up in 2025. Quarter 1 The year began with cautious optimism as the UK’s gas reserve levels were healthy and prices for the Summer’24 season were in freefall. In February, prices pulled back to their lowest levels since 2021, and for the first time in a while, we identified that there was greater potential for upside risk than for further downward price movement: “ there now (exists) an asymmetrical element of risk should the market encounter a supply-side problem of significance. ” During February we had advised customers on flexible contracts that this was an ideal time for making purchases. March would see prices begin to ascend again as international conflict would create problems with LNG imports, and we would highlight the geopolitical risks as an area for concern moving forwards: “ fears remain and there are potential negative catalysts that could lead to prices rising further, with the main factors to watch out for being based on geopolitical unrest. “ For a business that purchases their energy in advance, this quarter was the optimal time for purchasing during 2024. In February, electricity prices for Winter’25 were down to 7.75p/Kwh, and as low as 6.05p/Kwh for Summer’25. Winter’25 ended the year with prices above 11.1p/Kwh, with Summer’25 prices exceeding 9p/Kwh. For a company that uses 500,000Kwh of electricity per month, the difference between buying at the February low point compared to today’s prices would represent a yearly saving of over £200,000.

December Review By Adam Novakovic As we moved into the final month of 2024 it seemed as though Santa would be the one delivering positive news regarding energy prices. From the 1 st of December to the 16 th , wholesale gas prices fell by almost 20% and it seemed the overdue market correction was finally underway. However, the price movement for the remainder of the month was more grinch-like than anybody had hoped, as prices rose again, wiping out the decline we had seen in the first half of the month. There were 2 reasons for this rise in prices, the first reason being the weather. Initial long-term forecasts had not predicted this winter to be particularly cold, however, December saw erratic weather events and lower than anticipated temperatures. In October it had been predicted that UK gas consumption throughout the current winter would be very similar to the levels of last year. This now appears to be inaccurate as colder temperatures have led to increased consumption. European gas storage levels have dropped below 75% of capacity with the UK levels being around 55%. This does not compare favourably to last year and raises concerns of how prices could rise should there be a particularly cold January and February. Part of these concerns are already factored into the prices, but this is likely to be the largest short-term factor in energy prices.