Gas and power prices have “significantly” fallen from last week’s levels, according to Inenco’s Y report.
They are down after they increased by around £5 to £6 per MW for power and five to six pence per therm for gas, with experts suggesting it was due to cold temperatures and higher than seasonal normal demand.
They also forecast oil prices to fall after the failure of the Doha meeting but they still remain “relatively” high.
Stuart Lea, Head of Energy Trading said: “A lot of people bought gas and electricity last week and many trigger levels were breached and this meant that the buying pressure also fed to the price frenzy.
“Even whilst people were busy buying gas and electricity last week, many people speculated that the price increase was a material overreaction to what was only a short term weather forecast issue.”
The fall in prices have been supported by higher temperatures this week which has seen gas demand drop alongside the gas storage facility Rough going offline which means “we can’t inject gas into it”.
On the power system two nuclear plants were back online over the weekend and demand is forecast to fall this week together with higher wind generation.
Mr Lea added: “For those that didn’t buy last week, last week should serve as a bit of a warning to you. Whilst the price outlook does remain good, the unexpected can happen and prices can increase materially without warning and so quick you can’t react to the increase. For this reason you may want to consider at least part-buying your requirements.”