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26 August 2022
Headlines
All gas and power contracts increased this week, with many longer-term contracts hitting all-time highs. Gas contracts along the curve were pushed higher following news that Nord Stream 1 will shut down for three days of maintenance at the end of August. This fuelled concerns of tight supply margins, with Norwegian gas fields and processing plants set to enter a heavy maintenance period in September. Day-ahead gas jumped 43.4% to 545.00p/th. September 22 gas climbed 25.2% to 575.92p/th and October 22 gas rose 22.0% to 641.78p/th. Seasonal gas contracts gained 24.8% on average. Winter 22 gas surged 26.8% to 766.55p/th, while summer 23 gas lifted 25.1% to 682.43p/th. Power prices followed the gas market higher, while low hydro levels in Europe and French nuclear outages continued to provide price support. Day-ahead power rose 25.0% to £500.00/MWh. September 22 power increased 25.4% to £535.00/MWh and October 22 power gained 27.3% to £630.00/MWh. Seasonal power contracts jumped 18.3% on average. Winter 22 power climbed 24.0% to £800.00/MWh and summer 23 power moved 21.7% higher to £545.00/MWh. Brent crude oil rose 6.2% to average $99.77/bl, while UK ETS carbon edged 1.9% higher to average £95.02/t.
Baseload electricity
Day-ahead power gained 25.0% to £500.00/MWh, following gains in its gas counterpart.
September 22 power climbed 25.4% to £535.00/MWh and October 22 power increased 27.3% to £630.00/MWh.
Q422 power jumped 21.5% to £790.00/MWh.
The annual October 22 contract rose 23.1% to £672.50/MWh, compared to £72.03/MWh this time last year.
Forward curve comparison
Annual October Contract
Peak electricity
Day-ahead peak power surged 60.1% to £640.48/MWh, following its baseload counterpart higher.
September 22 peak power slipped 2.5% to £570.45/MWh, while October 22 peak power jumped 51.0% to £691.83/MWh.
The annual October 22 peak power rose 22.1% to £817.12/MWh.
This is 879.9% higher than the same time last year (£83.39/MWh).
Forward curve comparison
Annual October contract
Seasonal power prices
Seasonal baseload power contracts
Seasonal baseload power curve
All seasonal power contracts increased this week, up on average by 18.3%.
Winter 22 power climbed 24.0% to £800.00/MWh and summer 23 power moved 21.7 higher to £545.00/MWh.
All tracked seasonal peak power contracts increased this week, up 21.7% on average.
Winter 22 peak power rose 19.9% to £1,055.70/MWh and and summer 23 peak power climbed 26.2% to £578.54/MWh.
Commodity price movements
Oil and Coal
Carbon
Brent crude oil rose 6.2% to average $99.77/bl, this week.
Signs of increasing fuel demand coupled with better than expected US economic data provided support to prices.
In addition, prospects of an output cut from OPEC+ members also helped push prices higher.
API 2 coal gained 6.7% to average $317.40/t.
EU ETS slipped 2.1% to average €91.80/t. In contrast, UK ETS carbon gained 1.9% to average £95.02/t.
Carbon prices saw little movement this week, ahead of the resumption of full auction volumes in September
.Auction demand remained weak, amid continued concerns of an economic downturn in Europe resulting in lower energy demand.
Wholesale price snapshot
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