Day-ahead power surges to 10-year high
Business Energy Market Brief - Oct16
In September, day-ahead gas moved 10.2% lower to average 27.9p/th. Meanwhile, day-ahead power soared 45.6% to £53.2/MWh. On 16 September, the contract rocketed 339.4% to £157.7/MWh - the highest price since March 2006.
Peak wind power generation dropped to around 1GW on 19 September, tightening margins in the UK. In addition, continental European imports were lowered by 2GW on the back of planned interconnector outages. Seasonal gas prices declined by 3.7% on average, despite a slight climb in oil prices. Winter 16 gas experienced the largest drop, of 5.6%, to average 39.6p/th. Summer 17 gas decreased 3.1% to 36.8p/th.
Seasonal gas prices remain below their levels last year, in part because Centrica has said it will make 20 wells available at Rough gas storage facility from 1 November 2016. All 30 wells had been expected to be offline until spring 2017.
Seasonal baseload power contracts on average decreased 0.9% in September, following their gas counterparts lower. Winter 16 power fell 0.1% to £45.8/MWh. Summer 17 power went down 0.9% to £38.6/MWh.