Energy Market Report - Jan19
Market Leading Business
Energy Consultants
Your Trusted Commercial Energy Partners
Energy Market ReportsEnergy Market Report - Jan19

Energy Market Report - Jan19

Chris Hurcombe

by Chris Hurcombe 08 January 2019

Report Summary:

Wholesale prices experience mixed movements

key-market-indicatorsEnergy Market Brief - January 2019

All wholesale power contracts rose in December while gas contracts experienced mixed trends.
Power contracts for delivery in the near-term rose in December. Day-ahead power increased for the first time in three months, up 2.6% to average £64.0/MWh. The contract rose as consumption levels picked up, while times of low wind output acted to support prices over the Christmas period, with more expensive forms of generation being required to meet demand.

All seasonal power prices increased in December, gaining 3.1% on average to reverse the previous month’s decline. Summer 19 went up 3.1% to average £57.7/MWh, hitting a 10-week high of £59.9/MWh on 19 December. Contracts were supported by soaring EU ETS carbon prices, which climbed 18.4% to average €22.6/t in December. EU ETS carbon prices are factored into the cost of power generation; however, there is uncertainty over the UK’s future carbon pricing policies post Brexit.

Day-ahead gas slid 0.1% to average 64.3p/th in December, as an influx of Liquified Natural Gas (LNG) imports across the month kept prices from rising. The contract fell to a 20-week low of 59.1p/th on 31 December, with low gas demand forecast for New Year’s Day. Most seasonal gas contracts increased in December, rising 1.1% on average, despite a decrease in Brent crude oil prices. Summer 19 gas rose 0.8% to average 57.0p/th, whilst winter 19 gas lost 0.3% to average 64.5p/th. .