Day-ahead peak power sees biggest rise since 2011
Energy Market Brief - Dec16
Day-ahead peak power soared by 36.9% to average £91.5/MWh in November - the highest monthly rise since at least 2011. Prices have been boosted by continued concerns over French nuclear supplies. Day-ahead baseload power jumped 16.7% to average £66.4/MWh. On Monday 7 November, the contract reached £152.0/MWh, with higher demand and lower wind generation forecast for the following day.
Day-ahead gas also continued to rise in November, up 12.4% to average 48.4p/th. On Thursday 3 November, the contract climbed to 53.8p/th, the highest price since February 2015, as colder temperatures and a bleak LNG outlook supported prices.
Seasonal gas prices slipped 1.6% on average, with a decline in oil prices. Summer 19 gas experienced the largest fall of 3.3% to 42.0p/th. By contrast, the summer 17 contract moved 0.6% higher to 42.8p/th. Seasonal gas prices were higher than their levels last year. At the end of November, Centrica announced that the Rough gas storage site would be available for gas withdrawals no later than 9 December - meaning more supplies during winter, even though the site is only 35% full at present.
Seasonal baseload power contracts on average decreased 2.6% in November, following their gas counterparts lower. Summer 17 power lost 0.6% to £43.9/MWh. Winter 17 power slipped 1.6% to £48.1/MWh.