June 2021 Energy Market BriefIn May 2021, all tracked wholesale GB gas contracts rose, with the most pronounced rises observed across near-term contracts.

In May 2021, all tracked wholesale GB gas contracts rose, with the most pronounced rises observed across near-term contracts. Gas prices across the board remained comfortably above their levels seen at the same time last year, amid a consistently bullish commodity market and EU gas storage levels remaining at multi-year lows.

On average, seasonal gas contracts from winter 21 to winter 23 were 10.8% higher in May than in April, with prices collectively ending the month higher than they were at the month’s start. Winter 21 rose 18.0% to average 69.23p/th, while summer 22 gas lifted 10.4% to 56.74p/th.

Wholesale power contracts also shared the upward price trends seen in the gas market, with collective rises across all tracked power contracts in May.
Seasonal power contracts up to and including winter 23 rose 13.1% on average in May. Winter 21 rose 15.7% to £80.38/MWh, while summer 22 rose 13.1% to £59.39/MWh. The annual October 21 power contract rose 14.2% to average £69.66/MWh.

Forwards power contracts were supported by bullish gas and international commodity markets, particularly EU ETS and now UK ETS carbon prices. EU ETS carbon prices continued their unprecedented bullish momentum in May, reaching another all-time high of €55.71/t on 17 May.