Energy Market Report - Sep18
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Energy Market ReportsEnergy Market Report - Sep18

Energy Market Report - Sep18

Ian Mckenna

by Ian Mckenna 04 September 2018

Report Summary:

Wholesale prices hit fresh highs amid low wind

key-market-indicatorsEnergy Market Brief - Sep18

Wholesale power and gas prices rose across the board in August, with many contracts rising for a sixth consecutive month.

In the nearer term, day-ahead power went up 5.8% to average £60.9/MWh. Prices rose as low renewables output led to more expensive forms of generation meeting demand, with the contract ending the month at a five-month high of £66.4/MWh.

All seasonal power prices grew in August, up 5.4% on average. Winter 18 ascended 5.3% to average £65.2/MWh, peaking at a record high of £70.6/MWh on 28 August. Rising gas and commodity prices, which, coupled with low renewables output throughout August, has led to sustained growth for near-term and seasonal power contracts.

Day-ahead gas rose 6.8% to average 61.6p/th. Prices increased from 58.5p/th at the start of August to highs of 68.3p/th on 28 August. Prices have been supported by increased gas demand for power generation amid low renewables output, and several strikes and outages affecting North Sea supplies. All seasonal gas contracts increased in August, rising 5.1% on average. Winter 18 gas prices rose 5.2% to average 67.5p/th. Winter 18 peaked at a record high of 73.8p/th on 28 August, finding support from commodity prices.