Energy Wholesale Market Review
Energy Wholesale Market Review Week Ending 22nd December 2023
This week, most power and gas wholesale contracts rose, reversing the overall bearish movement seen across contracts throughout 2023 to date. Day-ahead gas rose 2.3% to 77.00p/th, following declining wind generation forecasts, boosting gas-for-power demand. Day-ahead power rose 7.7% to £70.00/MWh, following its gas counterpart, with further gains supported by a strong drop in wind generation projections for next week as Storm Pia passes. January 24 gas was up 3.8% at 86.60p/th, and February 24 gas increased 3.8% to 87.60p/th. Most seasonal gas contracts declined last week, down by 19.2% on average; however, summer 24 and winter 24 gas increased 2.9% and 0.7% respectively, lifting to 86.40p/th and 103.20p/th. Most seasonal power contracts boosted this week, up on average by 4.6%, as summer 24 and winter 24 expanded 6.8% and 4.1% respectively, rising to £80.00/MWh and £97.10/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 22nd December 2023.
Energy Wholesale Market Review Week Ending 15th December 2023
This week, all power and gas wholesale contracts fell, continuing the overall bearish movement seen across contracts throughout 2023 to date. Day-ahead gas fell 22.2% to 75.25p/th, following increased temperature forecasts acting to soften gas-for-heating demand, providing bearish support. Day-ahead power fell 24.9% to £65.00/MWh, with a rise in wind generation projections, alongside a reduction in consumption forecasts, acting to loosen system margins. January 24 gas was down 16.0% at 83.40p/th, February 24 gas decreased 16.1% to 84.40p/th. All seasonal gas contracts declined last week, down by 8.6% on average, while both summer 24 and winter 24 gas dropped 13.8% and 9.5% respectively, subsiding to 84.00p/th and 102.50p/th. All seasonal power contracts declined this week, down on average by 8.4%, as summer 24 power decreased 11.4% to £74.90/MWh, while winter 24 fell 8.1% to £93.30/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 15th December 2023.
Energy Wholesale Market Review Week Ending 8th December 2023
This week saw the continuation of bearish price movements across most gas and power wholesale contracts. Subsequently, we saw the majority of gas and power contracts drop week-on-week. Day-ahead gas fell 7.9% to 96.75p/th, as higher levels of wind generation on the system led to less demand for gas-fired assets, acting to outweigh the continuation of colder temperatures across the week. Likewise, day-ahead power fell 19.2% to £86.50/MWh, mirroring trends set from its gas equivalent contract and driven further by the aforementioned higher levels of wind generation acting to loosen system margins. Furthermore, January 24 gas was down 7.2% at 99.30p/th, and February 24 gas decreased 7.7% to 100.60p/th. All seasonal gas contracts saw losses this week, down by 4.1% on average, while both summer 24 and winter 24 gas decreased 6.3% and 5.0% respectively, falling to 97.50p/th and 113.25p/th. Like gas, all seasonal power contracts fell this week, down on average by 6.8%, as summer 24 power decreased 7.7% to £84.50/MWh, while winter 24 fell 6.5% to £101.50/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 8th December 2023.
Energy Wholesale Market Review Week Ending 1st December 2023
It was a bearish week across all tracked gas and power contracts this week, continuing the trend of decreasing wholesale prices observed across much of 2023. Day-ahead gas fell 15.0% to 105.00p/th, despite below-average temperatures during the week, as gains were outweighed by notably reduced levels of maintenance across the UK and Norwegian Continental Shelf, bolstering flows into GB from Norway. Likewise, day-ahead power dropped 10.1% to £107.00/MWh, taking direction from losses made in near-term gas markets, despite decreased wind output during the week. January 24 gas was down 12.7% at 107.00p/th, and February 24 gas decreased 12.4% to 109.00p/th. Likewise, all seasonal gas contracts fell this week, down by 7.9% on average, with summer 24 and winter 24 gas dropping 11.1% and 9.0% respectively, subsiding to 104.00p/th and 119.20p/th. Moreover, all seasonal power contracts traded lower this week, down on average by 7.1%. Summer 24 and winter 24 power went down 10.3% and 8.1% respectively, falling to £91.50/MWh and £108.50/MWh.
Wholesale price snapshot – Friday-on-Friday
Energy Wholesale Market Review Week Ending 1st December 2023.
Written By Graham Paul
