Sharp gains in commodity markets continued to support power and gas prices in May, with seasonal power contracts averaging their highest levels since December last year.
Seasonal gas prices gained 6.3% on average, as higher oil prices fed through to the GB gas market. Winter 16 gas was up 6.9% to average 36.1p/th, while summer 17 gas experienced the largest increase, up 8.5% to 33.4p/th.
In the shorter term, day-ahead gas moved 3.6% higher to average 30.3p/th. It has been reported that gas-for-power demand in May was at a four-year high.
Gas-fired generation has dominated the UK energy mix in recent months, increasing demand for gas and consequently supporting prices.
Seasonal power contracts also climbed in May, following their gas counterparts higher.
Winter 16 power lifted 5.4% to average a six-month high of £40.2/MWh, while summer 17 power rose 7.0% to £34.6/MWh. Day-ahead power also followed its gas counterpart, rising 1.0% to average £34.2/MWh.
