Energy Wholesale Market Review

Across the week ending 19 April, tracked gas and power contracts predominantly registered gains, however some of those further out on the forward curve saw losses. Day-ahead gas rose 6.3% to 77.05p/th, due to higher gas-for-power forecasts following lower wind generation projections and below-average temperatures. Likewise, day-ahead power rose 189.8% to £76.81/MWh, returning to a more typical price after the notably high wind generation over the past two weeks, finding support from the movements registered across its gas counterpart, and the aforementioned lower wind generation forecasts, which will increase the reliance on more expensive forms of power generation. Moreover, May 24 gas was up 2.7% at 76.95p/th, and June 24 gas increased 2.1% to 75.85p/th. Most seasonal gas contracts lowered last week, however a 39.9% increase to the winter 26 contract, rising to 113.28p/th, led to overall growth across seasonal contracts, up 6.5% on average. Similarly, most seasonal power contracts declined this week, down on average by 0.6%, as summer 25 fell 1.3% to £73.50/MWh, and winter 25 dropped 1.2% to £82.50/MWh. Brent crude oil and the UK and EU carbon markets continue to be impacted by global geopolitical events, and as such it is expected prices will remain volatile in the week ahead.

Wholesale price snapshot – Friday-on-Friday

Energy Wholesale Market Review Week Ending 22nd April 2024.