Business Energy Market Brief - Jan18
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Energy Market ReportsBusiness Energy Market Brief - Jan18

Business Energy Market Brief - Jan18

Chris Hurcombe

by Chris Hurcombe 08 January 2018

Report Summary:

Near-term power and gas prices rise

key-market-indicatorsEnergy Market Brief - Jan18

Throughout December near-term power and gas contracts experienced gains, with day-ahead gas reaching a four-year high, while its power equivalent hit a six-month high.

Day-ahead gas prices across the month leapt 12.8% to average 59.5p/th, extending upon the gains observed across November where prices averaged 52.8p/th. On 12 December prices hit a four-year high (78.0p/th), amid an explosion at the Baumgarten gas pipeline, coupled with an outage at the Forties pipeline which limited supplies. Seasonal contracts remained largely unchanged from the previous month, declining on average just 0.2%. The largest loss was observed in the summer 19 contract, which fell 1.5% to average 41.8p/th.

Average day-ahead power prices boosted 8.3% to £55.7/MWh. Prices reached a six-month high (£63.5/MWh) following major outages across Europe. Seasonal baseload power contracts experienced mixed movements during December, with contracts on averaging falling 0.2%. On 28 December, the winter 18 contract hit £50.5/MWh, a near three-year high...