Near-term gas and power contracts moved lower this week, while most seasonal contracts continued to increase. Day-ahead gas dropped 11.2% to 158.00p/th, with warmer temperatures leading to reduced demand towards the end of the week. Month-ahead gas lost 7.2% to 185.16p/th and June 22 gas slipped 4.1% to 209.97p/th. Seasonal gas contracts rose 3.8% on average. The winter 22 contract was the only contract to move lower week-on-week, declining 2.8% to 243.36p/th, while summer 23 gas gained 4.4% to 196.85p/th. Power prices followed their gas counterparts closely, with day-ahead power losing 5.9% to £160.00/MWh. May 22 power dropped 3.2% to £181.00/MWh and the June 22 contract slipped 1.0% to £200.00/MWh. All seasonal power contracts increased this week, rising 7.8% on average. Winter 22 power edged 0.1% higher to £229.16/MWh and summer 23 power climbed 6.6% to £177.00/MWh. Brent crude oil gained 4.5% to average $108.66/bl, despite concerns of weaker global growth and wavering demand due to further Covid lockdowns in China. EU ETS carbon jumped 9.9% to average €84.83/t, while UK ETS gained 1.2% to average £78.13/t.
Baseload electricity
Day-ahead power lost 5.9% to £160.00/MWh, following its gas counterpart lower
May 22 power dropped 3.2% to £181.00/MWh and June 22 power declined 1.0% to £200.00/MWh.
Q322 power edged 0.1% lower to £218.00/MWh.
The annual October 22 contract rose 2.8% to £203.08/MWh.
Forward Curve Comparison
Annual April Contract
Peak electricity
Day-ahead peak power followed its baseloasd counterpart lower, losing 5.7% to £165.00/MWh.
May 22 peak power fell 4.6% to £197.80/MWh, and June 22 peak power decreased 2.3% to £216.70/MWh.
The annual October 22 peak power jumped 13.1% to £238.73/MWh
This is 335.6% higher than the same time last year (£54.80/MWh).
Forward curve comparison
Annual April contract
Seasonal power prices
Seasonal baseload power contracts
Seasonal baseload power curve
All seasonal power contracts saw gains this week, rising on average by 7.8%.
Winter 22 lifted 0.1% to £229.16/MWh and summer 23 rose 7.1% to £177.00/MWh.
All seasonal peak power contracts also moved higher this week, up 27.2% on average.
Summer 23 peak power increased 39.0% to £197.35/MWh whilst the winter 23 contract saw similar gains, up 8.5% to £231.05/MWh.
Commodity price movements
Oil and Coal
Carbon
Brent crude oil gained 4.5% to average $108.66/bl this week.
Despite averaging higher than last week, Brent prices moved steadily throughout the week, amid concerns of weaker global growth and wavering demand due to further Covid-19 restrictions in China.
Elevated prices for Brent crude oil are likely to remain, given the tight global supply/demand picture at present.
EU ETS carbon jumped 9.9% to average €84.83/t, while UK ETS carbon climbed 1.2% to average £78.13/t.
EU ETS carbon prices were driven higher by a combination of strong auction results and a surge in speculative buying in the second half of the week.
The continuation of higher gas prices has also increased the levels of gas-to-coal switching, increasing demand for EUAs.
Wholesale price snapshot
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