Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 24th February 2023
This week saw the introduction of some more bullish pricing sentiment, after what has represented a largely suppressed wholesale pricing environment in the opening two months of 2023. Elevated near-term gas contracts this week set a lot of the bullish sentiment for upward trending wholesale prices in the week, and in turn, prompted power to follow suit. Recognising these price rises, day-ahead gas rose 13.0% to 135.0p/th, amid the introduction of colder weather promoting higher heating demand, coupled with unplanned outages on Friday over the UK Continental Shelf, squeezing supply. Day-ahead power rose 22.6% to £146.5/MWh, mirroring trends shown from its equivalent gas contract. Subsequently, March 23 gas was up 7.5% at 132.0p/th, and April 23 gas increased 4.9% to 129.2p/th. Elsewhere, most seasonal gas contracts boosted this week, up by 1.0% on average, with both summer 23 and winter 23 gas increasing 3.5% and 0.8% respectively, lifting to 131.5p/th and 154.5p/th. On the contrary, most seasonal power contracts declined this week, with summer 24 and winter 24 retracting 3.6% and 1.3% respectively, falling to £132.0/MWh and £155.0/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 24th February 2023.
Energy Wholesale Market Review Week Ending 17th February 2023
It was a bearish week as nearly all power and gas contracts decreased across the week. March 23 baseload and peak power contracts representing the noteworthy outliers, however. Day-ahead gas fell 12.1% to 119.5p/th, following the continuation of warmer weather trends across the UK, easing demand – coupled with the resumption of higher levels of LNG imports to UK landing terminals. Day-ahead power dropped 14.6% to £119.5/MWh, mirroring the losses observed from the equivalent gas contract, and reflective of periods of heightened wind and renewable outturn. Subsequently, March 23 gas was down 8.2% at 122.7p/th, and April 23 gas decreased 8.7% to 123.2p/th. Elsewhere, all seasonal gas contracts declined this week, down by 5.3% on average. Summer 23 and winter 23 gas dropped 7.3% and 6.0% respectively, subsiding to 127.0p/th and 153.2p/th. Like gas, all seasonal power contracts declined this week, down on average by 4.5%, as summer 23 power decreased 5.5% to £137.0/MWh, while winter 23 fell 5.3% to £161.0/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 17th February 2023.
Energy Wholesale Market Review Week Ending 10th February 2023
It was a bearish week as all power and gas contracts decreased across the week. Day-ahead gas fell 9.3% to 136.00p/th, amid higher temperatures forecast for next week. Day-ahead power fell 17.6% to £140.00/MWh, influenced mainly by its gas counterpart, amid low wind forecast outturn. March 23 gas was down 9.6% at 133.75p/th, and April 23 gas decreased 10.3% to 135.00p/th. All seasonal gas contracts declined last week, down by 9.3% on average, while both summer 23 and winter 23 gas dropped 11.0% and 9.8% respectively, subsiding to 137.00p/th and 163.00p/th. All seasonal power contracts also experienced losses this week, declining on average by 6.7%, as summer 23 power decreased 7.6% to £145.00/MWh, while winter 23 fell 8.1% to £170.00/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 10th February 2023.
Energy Wholesale Market Review Week Ending 3rd February 2023
All gas and power contracts increased this week. Day-ahead gas rose 8.7% to 150.00p/th, supported by an undersupplied system throughout most of the week, with this exacerbated by an unplanned outage at the Norwegian Kollsnes gas processing plant. Day-ahead power jumped 47.8% to £170.00/MWh, taking direction from its gas counterpart and forecasts of decreased wind output early next week. March 23 gas climbed 7.2% to 148.00p/th and April 23 gas gained 6.8% to 150.50p/th. Seasonal gas contracts out to winter 2024 lifted 8.1% on average, with the summer 24 contract seeing the greatest movement, rising 9.5% to 162.00p/th. Meanwhile, summer 23 gas rose 8.5% to 154.00p/th. Seasonal power contracts out to winter 2024 climbed 6.4% on average. The summer 23 contract gained 10.8% to £157.00/MWh, while winter 2023 power lifted 7.2% to £185.00/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 3rd February 2023.
Written By Graham Paul
