Headlines
Most power and gas contracts fell this week, with day-ahead power contracts being the exception to this trend. Day-ahead gas fell 7.4% to 27.60p/th, from the eight-month high seen last week, with increased renewables and nuclear output seeing lower gas consumption for power generation. Day-ahead power rose 12.2% to £48.25/MWh, driven by forecasts of lower wind output for the start of next week. October 20 gas saw a notable drop and was down 10.1% to 27.89p/th. Most seasonal gas contracts followed oil prices lower this week, down by 3.0% on average, with the winter 20 contact dropping 5.4% to 36.93p/th. Seasonal power contracts slipped 0.9% on average, as prices were weighed on lower gas and EU ETS carbon prices. Winter 20 power decreased 1.4% to £50.40/MWh. International commodities saw collective downward movements this week. Brent crude oil prices declined by over 9% to average $40.81/bl, representing lows not experienced since mid-June. Similarly, the EU ETS carbon price dropped amid increased auction volumes, averaging €27.27/t.
| Baseload electricity | | |
- Day-ahead power rose 12.2% to end the week at £48.25/MWh, driven higher by forecasts of lower wind output going into next week.
- October 20 power slipped 4.7% at £42.20/MWh and November 20 power decreased 6.0% to £51.61/MWh.
| | - Q420 power moved 3.0% lower to £48.49/MWh.
- The annual October 20 contract lost 1.8% to £46.75/MWh, 8.9% lower than the same time last year (£51.33/MWh).
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Forward curve comparison 
| | Annual October Contract 
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| Peak electricity | | |
- Day-ahead peak power was up 8.5% to £52.10/MWh, following in line with higher demand this week and as day-light hours begin to reduce.
- October 20 peak power declined 2.3% to £49.15/MWh, and November 20 peak power decreased 2.5% to £60.53/MWh.
| | - The annual October 20 peak power contract lost 1.4% to £53.03/MWh.
- This is 8.2% lower than the same time last year (£57.79/MWh).
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Forward curve comparison 
| | Annual October contract 
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| Seasonal power prices | | |
Seasonal baseload power contracts 
| | Seasonal baseload power curve 
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- Most seasonal power contracts declined this week, down on average by 0.9%.
- Winter 20 power decreased 1.4% to £50.40/MWh, while summer 21 fell 2.4% to £43.10/MWh.
| | - Most seasonal peak power contracts declined this week, down 1.8% on average.
- Winter 20 and summer 21 peak power dropped 1.2% and 1.8% respectively, falling to £58.53/MWh and £47.52/MWh.
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| Commodity price movements | | |
Oil and Coal 
| | Carbon 
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- Brent crude oil prices have fallen significantly this week, seeing a 9.2% drop to average $40.81/bl – the lowest prices since mid-June 2020.
- News continued to circulate this week about the threat of a second wave of Coronavirus, generating some uncertainty within the market. Rising levels of US crude inventory levels and onshore storage similarly weighed on prices with fears of market oversupply.
- Compounding the issues arising from COVID-19 and market oversupply were price cuts announced by Saudi Arabia, with demand stuck below pre-COVID levels.
| | - Following recent gains, EU ETS prices fell 4.5% to average €27.27/t this week.
- The market experienced mixed movements this week, experiencing both weekly highs and subsequently falling amid a significant increase in auction volumes – increasing by more than 70%.
- The increased auction volumes weighed on carbon prices as the market struggled to absorb the higher volume of EUA’s.
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Wholesale price snapshot 
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