Near-term gas and power contracts moved lower this week ahead of the festive period. However, longer-term contracts continued to show gains. Day-ahead gas dropped 21.5% to 267.00p/th, with demand set to drop over the Christmas holiday period. Prices are still over 200.00p/th higher than the same time last year amid concerns over tight supplies, heightened following the reversal of gas flows between Russia and Germany via the Yamal pipeline. Month-ahead gas fell 19.6% to end the week at 273.14p/th; however, summer 22 gas jumped 16.8% to 231.42p/th and winter 22 gained 17.9% to 237.30p/th, reflecting concerns of prolonged tightness in the gas market. Power prices followed the movements in the gas market very closely. Day-ahead power fell 47.5% to £210.00/MWh, while the January 22 contract lost 29.2% to £340.00/MWh. Summer 22 power rose 14.8% to £210.00/MWh, while winter 22 power lifted 10.8% to £215.00/MWh. Brent crude oil slipped 0.5% to average $73.84/bl, with expectations of lowering demand as a result of renewed COVID-19 restrictions.
Baseload electricity
Day-ahead power dropped 47.5% to £210.00/MWh, following its gas counterpart lower.
January 22 power fell 29.2% to £340.00/MWh and February 22 power was unchanged at £440.00/MWh.
Q122 power lost 11.2% to £360.00/MWh.
The annual April 22 contract increased 12.7% to £212.50/MWh, 327.6% higher than the same time last year (£49.70/MWh), and 79.1% higher than the same time last month (£118.68/MWh).
Forward Curve Comparison
Annual April Contract
Peak electricity
Day-ahead peak power lost 55.2% to £235.00/MWh, following baseload power lower.
January 22 peak power fell 34.3% to £542.00, while February 22 peak power increased 18.1% to £797.00/MWh.
This week, the annual April 22 peak power contract rose 29.9% to £260.03/MWh.
This is 364.1% higher than the same time last year (£59.78/MWh), and 84.7% higher than the same time last month (£140.80/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 8.3% on average.
Summer 22 power gained 14.8% to £210.00/MWh and winter 22 power rose 10.8% to £215.00/MWh.
Seasonal peak power contracts jumped 36.9% on average this week.
The summer 22 peak contract leapt 33.0% to £241.45/MWh and winter 22 peak power climbed 27.2% to £278.60/MWh.
Commodity price movements
Oil and Coal
Carbon
Brent crude oil slipped 0.5% to average $73.84/bl, this week.
Prices were pushed lower by expectations of lowering demand as a result of renewed COVID-19 lockdown restrictions.
However, losses were capped by recent reports that the Omicron variant is less severe than Delta, providing hopes that re-imposed restrictions will not last as long as previous restrictons.
API 2 coal lifted 2.4% to average $126.50/t.
Carbon prices saw mixed movements this week, with the UK ETS rising 2.1% to average £76.85/t, whereas the EU ETS lost 3.1% to average €78.21/t.
UK ETS carbon prices continued to be supported by periods of low renewables output and high gas prices.
EU ETS prices were pushed lower by falling gas prices on the continent, following news that a number of LNG cargoes previously bound for Asia had been re-routed to North West Europe.
Wholesale price snapshot
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