Business Energy Market Brief - May18
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Energy Market ReportsBusiness Energy Market Brief - May18

Business Energy Market Brief - May18

Chris Hurcombe

by Chris Hurcombe 09 May 2018

Report Summary:

Support for booming power market

key-market-indicatorsEnergy Market Brief - May18

A number of power contracts reached multi-year highs throughout April, supported by a bullish commodity market which posted fresh oil and carbon highs.

Day-ahead gas dropped 17.8% to average 51.0p/th in April, as demand has fallen with rising temperatures. April saw nine LNG deliveries to the UK, the highest in a year. Month-ahead gas went hit fresh highs not seen since February 2017 in the middle of April, hitting 52.2p/t, rising 7.7% to average 49.7p/th across the month. Seasonal gas contracts gained 4.7% on average, contracts out to winter 2020 reached record highs spanning one to three years, continuing to be supported by higher oil and coal prices. Winter 18 gas jumped 5.8% to 55.5p/th, and summer 19 gas moved 5.7% higher to 42.83p/th.

Day-ahead baseload power fell 12.4% to average £50.7/MWh, weighed on by rising solar and wind generation, combined with lower demand, in the second half of the month. The month-ahead contract rose 7.3% to £469.5/MWh. All seasonal baseload power contracts rose, increasing on average by 6.3%. Winter 18 power climbed 6.0% to £54.3/MWh, and summer 19 power gained 7.0% to £44.0/MWh..