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UK Gas & Power Markets Ease

  • Writer: Professional Energy People
    Professional Energy People
  • Dec 5, 2025
  • 6 min read

UK Energy Market Update


November 2025


Market Summary

 

In November, EU gas storage levels fell steadily from around 83% to near 75%, well below the five-year seasonal average. Early-month mild weather and strong LNG inflows helped stabilise stocks, but sustained withdrawals driven by cooler temperatures and heating demand, particularly in Germany, France, Italy, and the Netherlands, outweighed injections. By month-end, inventories were more than ten percentage points below the five-year norm, highlighting tighter supply conditions and elevated winter risk.

 

COP30 opened in Belém, Brazil, amid weakening political momentum in advanced economies and sharper scientific warnings, with new data showing climate change accelerating and heightening long-term transition risks. The EU entered the talks having softened its proposed 2040 emissions-cutting framework, while fewer than 90 countries submitted updated 2035 Nationally Determined Contributions (NDCs) ahead of the summit. Some progress emerged through a new Brazil-led coalition on carbon market cooperation, joined by the EU and China, aimed at improving global alignment on pricing and offsets. However, ambition was questioned after the latest draft text dropped explicit fossil-fuel phase-out language, creating uncertainty for energy-sector investment signals as negotiations continued past the scheduled deadline.

 

Diplomatic efforts around a potential Russia–Ukraine peace agreement intensified in November, involving Turkey, the United States and European partners, but political and security divisions prevented meaningful progress. Draft proposals circulated by the US administration were criticised for favouring Russia, and follow-up talks in Geneva failed to resolve core issues such as territorial control, sanctions and security guarantees. Parallel US–Russia discussions in Abu Dhabi also produced no breakthrough while Russian strikes continued. Energy markets reacted to the shifting signals, prices briefly eased on hopes of reduced geopolitical risk before firming again after President Putin stated that a settlement was legally impossible in the near term.

 

Ukraine’s energy security remained under pressure in November as Russian strikes damaged domestic gas and power infrastructure, sharply reducing production. The country increased reliance on European imports, securing agreements with Greece and the United States to deliver US-sourced LNG via regional pipelines, and additional seaborne cargoes through Lithuania by DTEK. Kyiv also advanced cooperation with Poland’s Orlen and signed a letter of intent with Greece’s DEPA for LNG from the Southern Corridor. These measures, including expanded capacity bookings on the Greece–Ukraine route, heightened European market attention due to the potential impact on regional gas flows.

 

The UK Government has launched its ‘Clean Energy Jobs Plan’ to develop a skilled workforce for the country’s energy transition. The plan includes £1.2 billion annually for clean energy skills, the creation of five Clean Energy Technical Excellence Colleges, and up to £20 million to support North Sea workers transitioning into low-carbon sectors. While the UK currently lags behind other European nations in renewable energy jobs per capita, the plan underscores the government’s ambition to position the country as a global leader in clean energy employment, ensuring workers receive training, financial support, and strong labour protections.


Net Zero News

 

Sizewell C has officially reached financial close, paving the way for full-scale construction of Britain’s first new nuclear power station in a generation.

 

The UK’s largest operational battery energy storage system (BESS) is now online, marking a key step in the nation’s clean energy transition. Thurrock Storage, a 300MW / 600MWh project developed by Statera Energy in Tilbury, Essex, can supply power to 680,000 homes for up to two hours.

 

The government has confirmed that Wylfa on Anglesey will be the site of Britain’s first small modular reactors (SMRs). The announcement concludes years of speculation and marks the start of what ministers describe as a new nuclear era for the UK.

 

MCS, the certification body for smaller-scale clean energy installations, has confirmed that certified solar project installations in 2025 have now exceeded 203,125, breaking the previous record.

 

Britain is preparing for its most significant energy resilience overhaul in decades after the Heathrow fire exposed key vulnerabilities. Ministers say a new strategy, expected next year, will strengthen critical infrastructure against climate shocks, cyber threats, and geopolitical risks.

 

Ofgem has approved an extra £107 million for two National Gas projects, which will contribute to Project Union, the company’s proposed core hydrogen network.

 

Water sustainability remains a low priority for many companies despite growing risks, according to the investor-led non-profit Ceres. Its 2025 Valuing Water Finance Initiative Benchmark shows some progress, but pace of improvement is still insufficient to address emerging challenges.

 

Ofgem chief Jonathan Brearley has issued a stark warning to the energy sector, stating that Britain is at a “moment of foundational change” and that without new approaches to planning, construction, and regulation, consumers could face higher costs and increased risks.

 

The government has launched a comprehensive North Sea overhaul aimed at safeguarding current jobs while developing a future clean energy hub. The North Sea Future Plan outlines how the basin will remain productive for decades, ending new oil and gas exploration and transitioning the workforce into rapidly growing sectors.

 

Great Britain set a new wind generation record on 11 November, reaching 22,711 MW at 7:30 pm and surpassing the previous December 2024 high of 22,523 MW. This output is sufficient to supply electricity to over 22 million homes.


Electricity & Gas Prices

 

UK wholesale gas and electricity prices were lower overall in November, reflecting a mix of easing geopolitical risk and relatively stable supply‑demand fundamentals. The first half of the month saw moderate volatility, but mild weather and strong liquefied natural gas (LNG) flows helped ease withdrawal pressure and keep storage levels healthy, reducing short‑term supply concerns. Later, a cold snap mid‑month triggered a brief surge in heating demand that lifted gas‑fired power generation and pushed power wholesale prices upward. However, sentiment turned more bearish towards month‑end as progress in peace talks reduced the geopolitical risk premium on gas supplies, leading to downward pressure on both gas and electricity forward curves. As a result, by the end of November gas and power forward contracts, were lower than at the start of the month, despite temporary mid‑month spikes.




Flexible Purchasing

EPEX Price

Some of our flexible purchasing customers are buying on EPEX, a European auction for power. Because they auction every hour of each day, customers get the “market average” price as opposed to a fixed-term contract over e.g. a 12-month period. Being on this product means that you will pay the average of each day for the month and once the market falls the price will follow.

 

The EPEX price finished the month with an average of 7.57 p/kWh (commodity). With the non-commodity added to this, the overall rate will be around 20.07 p/kWh+.

 

Carbon Prices



In November 2025 EUA carbon prices averaged approximately €81.3 per tonne, up from October’s €79.2/tonne.

 

The increase was supported by a firmer energy-market backdrop, with colder weather and rising electricity demand in parts of Europe lifting wholesale power prices and demand for allowances. Structural policy factors also reinforced bullish sentiment, notably the planned reduction and phase-out of free allocations under the EU Emissions Trading System (ETS) for sectors affected by Carbon Border Adjustment Mechanism (CBAM) and tighter supply expectations from ongoing ETS reform.

 

Weaker industrial activity and renewed strength in renewables (particularly renewables-driven power generation) acted as headwinds and helped cap further upside.


Oil Market



3rd - Oil prices moved modestly higher as markets reacted to OPEC+ supply signals and ongoing demand considerations. Eight OPEC+ members agreed to raise December oil output by 137,000 barrels per day, matching the increases seen in October and November.

 

7th - Oil prices rose slightly, though the market remained on track for a second straight weekly decline as traders balanced supply‑side risks against oversupply concerns.

 

10th - Oil prices slipped gradually as markets weighed renewed concerns over oversupply. At the same time, optimism about demand remained, but it was not enough to offset the pressure from increased production expectations.

 

14th - Oil prices rose after a surprise disruption to Russian supply, a drone attack halted loadings at a major Black Sea oil export port, triggering fresh fears of short‑term supply disruption.

 

17th - Oil prices edged lower as a key Russian crude depot resumed operations following last week’s drone strikes, easing immediate supply concerns, although Brent Crude firmed into the weekly close as damage to Russia’s Ryazan oil refinery threatened to disrupt a significant portion of Russian refining capacity.

 

21st - Oil prices continued to decline as prospects for peace talks between Russia and Ukraine raised expectations of an easing of sanctions and a return of Russian oil to the market, adding to supply concerns

 

24th - Oil prices stabilised after experiencing their largest weekly decline since early October, as speculation over a potential Russia-Ukraine peace agreement raised concerns that a return of Russian crude exports could worsen the current market oversupply.

 

28th - Oil prices edged higher as ongoing OPEC+ negotiations and drawn‑out Russia–Ukraine peace talks kept geopolitical risk premiums alive amid a backdrop of persistent oversupply fears. Oil remains on track for a fourth straight monthly drop as markets brace for a structural surplus in 2026 and growing concerns over weak demand.

 

Get in Touch

 

Our team are independent energy advisors who provide competitive gas, electricity, and water prices for commercial businesses across the region.

 

Our complete energy management service also includes helping businesses to identify potential savings through energy audits, tax levy rebates and grant funding. We can also help you plan for Net Zero and achieve compliance with our in-house ESOS assessment service.


Contact us for a free initial consultation about your business energy.

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