October 2021 Energy Market BriefPrices continue their upward trend, and set new market highs.

In September, all tracked wholesale GB gas contracts rose, with the most pronounced gains observed across near-term contracts, continuing recent trends. Gas prices across the board remained comfortably above their levels seen at the same time last year, in what transpired as another record breaking month for GB gas prices, with consistent drivers of low European storage, higher gas-for-power demand and strong commodities underpinning this growth across September.

On average, seasonal gas contracts from winter 21 to winter 23 were 23.1% higher in September than in August, with prices collectively ending the month 33.0% higher than the start of the month. Winter 21 rose 46.0% to average 166.46p/th, also reaching an all-time high on 28 September at 219.26p/th.

Wholesale power contracts reached unprecedented levels in September, with all-time highs breaking the previous £195.00/MWh record set in January 2021 on seven occasions in the month.

Seasonal power contracts up to and including winter 23 moved higher, rising 23.0% on average in September. Winter 21 rose 46.7% to £164.47/MWh, while summer 22 rose 20.0% to £91.29/MWh. The annual October 21 power contract rose 35.9% to average £127.88/MWh.

Landmark highs set the benchmark for power prices to follow suit in September. Similarly, strong performing carbon markets, particularly the UK ETS, and notably low wind output allowed near-term power to climb significantly