Power market trends
What’s been happening?
- The annual October 16 baseload power contract improved 1.8% to average £35.0/MWh following both gas and commodity markets higher.
- In contrast, day-ahead power followed its gas counterpart lower, losing 1.2% to average £33.9/MWh.
Key market drivers
- Recent surges in commodity prices have helped to support seasonal power prices.
- Milder weather at the start of the month helped to reduce demand which, in turn, supressed day-ahead power prices.
* £ per MWh (Annual forward average)
Gas market trends
What’s been happening?
- The annual October 16 gas contract gained 1.0% to average 32.0p/th. Winter16 gas was 0.7% higher, averaging 33.5p/th. Summer 17 gained 1.3% to 30.5p/th.
- Day-ahead gas moved 2.1% lower during April to average 29.0p/th, hitting a seven-year low of 27.0p/th on 11 April.
Key market drivers
- Seasonal gas contracts have followed oil prices higher, moving away from the seven-year lows seen last month.
- Reduced demand amid milder weather pressured prices lower. A number of pipeline disruptions did lead to higher day-ahead prices, but not enough to push the average higher.
* £ per p/therm (Annual Forward Average)
European market trends
- All European gas prices increased in April, following a rise in commodity prices.
- GB prices ended the month 1.3% below Belgian prices, 6.5% above German prices and 3.7% higher than Dutch prices.
- European power prices showed mixed movements in April.
- German prices experienced the largest gains, up £3.0/MWh to £35.2/MWh.
- GB prices ended the month 59.0% above the European average of £22.2/MWh.
