1 April 2022

Headlines

The majority of power and gas contracts increased this week. Day-ahead gas climbed 16.0% to 298.00p/th, supported by colder temperatures and an undersupplied gas system towards the end of the week. The new month-ahead contract (May 2022) gained 11.3% to 298.23p/th and June 2022 gas jumped 23.4% to 301.93p/th. Seasonal gas contracts moved 2.7% higher on average. Winter 22 gas saw the greatest movements, rising 11.8% to 297.50p/th. In contrast, summer 23 gas lost 4.8% to 149.40p/th. Day-ahead power surged 21.9% to £245.00/MWh, driven higher by rising gas prices and decreasing wind generation. Month-ahead power lifted 7.1% to £249.00/MWh and June 22 power leapt 19.2% to £253.00/MWh. Seasonal power contracts climbed 8.9% on average, with summer 22 power jumping 16.6% to £260.00/MWh. Meanwhile, summer 23 power rose 3.7% to £140.00/MWh. Brent crude oil fell 4.9% to average $111.04/bl, pressured by the potential release of oil from the US Strategic Reserve and rising OPEC+ supply. EU ETS carbon lifted 0.3% to average €79.24/t, while UK ETS slipped 1.1% to average £76.35/t.

Baseload electricity
  • Day-ahead power gained 21.9% to £245.00/MWh, supported by higher gas prices and falling wind generation towards the end of the week.
  • May 22 power lifted 7.1% to £249.00/MWh and June 22 power climbed 19.2% to £253.00/MWh.
  • Q3-22 power rose 18.3% to £260.00/MWh.
  • The annual October 22 contract jumped 11.7% to £200.00/MWh, 275.8% higher than the same time last year (£53.22/MWh).
Forward Curve Comparison

Annual April Contract

Peak electricity
  • Day-ahead peak power rose 10.9% to £255.00/MWh, following baseload power higher.
  • May 22 peak power gained 8.2% to £264.96/MWh and June 22 peak power jumped 17.4% to £268.16/MWh.
  • The annual October 22 peak power was unchanged at £229.72/MWh
  • This is 285.8% higher than the same time last year (£59.54/MWh).

Forward curve comparison

Annual April contract

Seasonal power prices

Seasonal baseload power contracts

Seasonal baseload power curve

  • All seasonal power contracts increased this week, up by 11.7% on average.
  • Winter 22 power leapt 16.6% to £260.00/MWh, while summer 23 power edged 3.7% higher to £140.00/MWh.
  • Seasonal peak power contracts were little changed this week.
  • Winter 22 peak power was unchanged at £317.43/MWh, while the winter 23 contract lifted 1.9% to £185.00/MWh..
Commodity price movements

Oil and Coal

Carbon
  • Brent crude oil fell 4.9% to average $111.04/bl, this week.
  • Prices were pressured by the potential release of 180mn oil from the US Strategic Reserve, which would mark the largest release in its history.
  • In addition, the OPEC+ decision to stick to a previously agreed 432,000 barrel per day production increase from May added further downward pressure to prices.
  • Carbon markets saw mixed movements from the previous week. UK ETS carbon lost 1.1% to average £76.35/t, while EU ETS carbon lifted 0.3% to average €79.24/t.
  • EU ETS prices found support from colder temperatures, although price gains were capped by weak auction results on Friday.
Wholesale price snapshot 

Power to make change

We believe that people power can change the world. We are here to help you have a positive impact on the planet. Together we can make a difference.

Take the next step

Net Zero 2030

Leading by example, we are committed to becoming carbon neutral by 2023 and achieving net zero business emissions by 2030.

Read our net zero strategy

Our people

As an Employee Ownership Trust we embrace the three pillars of good communication, governance and leadership, putting our people first.

Learn more about us

By your side

Staying at the forefront of industry, we embrace and drive change, delivering solutions at pace and scale to meet the modern challenges of energy and sustainability.

Meet our people