Business Energy Market Brief - Sep15
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Energy Market ReportsBusiness Energy Market Brief - Sep15

Business Energy Market Brief - Sep15

Nathaniel Taylor

by Nathaniel Taylor 01 September 2015

Report Summary:

Gas and power continue to slide

Gas and power continue to slide


Seasonal gas and power contracts continued to decline in August. Drops in gas contracts, driven by falling oil prices and a comfortable supply outlook, fed through to power contracts, which were also dragged down by decreasing coal prices.

Annual October 15 gas fell 5.4% to average 42.2p/th, ending the month at 41.9p/th. High LNG supplies this month saw gas storage levels rise to 83% full. Although this is still below last year’s levels, confidence of continuing high LNG and Norwegian supplies has kept seasonal prices down.

Annual October 15 power dipped 2.6% to average £42.4/MWh, and ended the month at £42.8/MWh. With coal and gas prices remaining low, seasonal power contracts are unlikely to rise in the near future. Both annual gas and power contracts experienced their lowest prices since 2010.