Energy Market Report - Oct18
Market Leading Business
Energy Consultants
Your Trusted Commercial Energy Partners
Energy Market ReportsEnergy Market Report - Oct18

Energy Market Report - Oct18

Chris Hurcombe

by Chris Hurcombe 07 October 2018

Report Summary:

Wholesale prices follow commodities to fresh highs

key-market-indicatorsEnergy Market Brief - Oct18

Wholesale power and gas prices continued to rise throughout September, with many contracts rising for a seventh consecutive month and reaching fresh record highs.

Looking towards near-term power contracts, day-ahead power went up 9.4% to average £67.7/MWh. Prices rose throughout the month amid relatively low renewables output, which acts to push wholesale costs higher as more expensive forms of generation are required to meet demand. The contract peaked at £72.6/MWh on 24 September.

All seasonal power prices also grew in September, up 8.6% on average. Winter 18 ascended 11.0% to average £73.2/MWh, peaking at a fresh high of £76.2/MWh on 24 September. Growth was fuelled by rising gas and commodity prices. As the cost of emitting carbon is factored into the cost of power generation, higher carbon prices have led to higher wholesale power prices.

Day-ahead gas surged 18.3% to average 74.2p/th in September. Prices started the month at 69.3p/th and reached highs of 79.8p/th on 24 September. Prices have been supported by rising commodity prices, with EU ETS carbon hitting a 10-year high of €25.8/t on 10 September. All seasonal gas contracts increased in September, rising 11.4% on average. Winter 18 gas prices rose 15.0% to average 78.7p/th, hitting a record high of 82.9p/th on 24 September, finding support from commodity prices..