Catalyst Business Energy Market Brief June 2015
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Energy Market ReportsCatalyst Business Energy Market Brief June 2015

Catalyst Business Energy Market Brief June 2015

Ian Mckenna

by Ian Mckenna 01 June 2015

Report Summary:

Power contracts follow gas prices lower

Power contracts follow gas prices lower

key-market-indicatorsAll power contracts along the forward curve decreased in May, following their gas counterparts lower. The annual October 15 contract averaged £44.6/MWh, a 1.1% reduction on the average April price.  The system was comfortably supplied and demand has fallen as summer approaches. The day-ahead contract averaged £41.1/MWh over the month, down from £43.9/MWh in April.

All gas contracts fell on a healthy supply outlook. The annual October 15 contract averaged 46.7p/th in May, a 1.9% reduction from April’s average price (47.6p/th). The day-ahead contract dropped 5.6% to average 44.2p/th as rising temperatures resulted in lower demand. Gas prices could have fallen further had they not been supported during May by an increase in gas demand for power generation and higher exports as UK and European prices converged.