Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 8th March 2024
Predominantly bullish gas price movements arose this week due to maintenance at gas terminals across the Norwegian Continental Shelf limiting flows to GB. Likewise, below-average temperatures acted to bolster domestic heating demand and increase the requirement for gas-fired generation. As a result, day-ahead gas rose 6.0% to 68.50p/th. Similarly, day-ahead power rose 1.8% to £69.25/MWh, with decreased wind generation projections further increasing the requirement for gas-fired assets to meet demand. Moreover, maintenance at GB nuclear stations acts to limit its contribution to the generation mix. Similarly, April 24 gas was up 5.4% at 66.20p/th, and May 24 gas increased 4.8% to 65.50p/th. Most seasonal gas contracts increased this week, however a 12.6% drop to the summer 26 gas contract price led to an overall decrease of 0.4% across seasonal gas contracts. All seasonal power contracts rose, however, up on average by 3.6%, as summer 24 power increased 4.2% to £62.00/MWh, and winter 24 grew 3.8% to £74.00/MWh.
Wholesale price snapshot – Friday-on-Friday
Written By Graham Paul