Energy Wholesale Market Review, 13 December 2019

• Day-ahead power rose 13.8% to £42.10/MWh, following colder temperatures on average this week.
• January 20 power slipped 5.3% to £44.75/MWh and February 20 power decreased 4.2% to £45.49/MWh.

• Q120 power moved 4.0% lower to £44.59/MWh.
• The Annual April 20 contract lost 2.0% to £45.56/MWh, 19.1% lower than the same time last year (£56.35/MWh).

Forward curve comparison

Annual October Contract

• Day-ahead peak power was down 10.1% to £47.00/MWh, £4.90/MWh above its baseload counterpart.
• January 20 peak power declined 1.9% to £53.01/MWh, and February 20 peak power decreased 4.3% to £51.49/MWh.

• The Annual April 20 peak power lost 1.7% to 50.93/MWh.
• This is 19.8% lower than the same time last year (63.48/MWh).

Forward curve comparison

Annual October contract

Seasonal baseload power contracts

Seasonal baseload power curve

• Most seasonal power contracts declined this week, down on average by 1.2%.
• Summer 20 power decreased 2.4% to £41.42/MWh, while winter 20 fell 1.6% to £49.70/MWh.

• Most seasonal peak power contracts declined this week, down £1.5% on average.
• Summer 20 and winter 20 peak power dropped 1.9% and 1.5% respectively, falling to £45.31/MWh and £56.56/MWh.

Oil and Coal

Carbon

• Brent crude oil gained 3.3% to $64.27/bl.
• Oil prices reacted positively to a tweet by US President Donald Trump this week that the US was getting “very close to a big deal with China”.
• The President signed off on a deal to delay what would have seen increased tariffs on China coming into effect on 15 December.
• API 2 coal lost a further 3.8% to $59.72/t as prices dipped below $60.00/t for the first time since July 2016.

• EU ETS carbon reversed last week’s losses gaining 1.6% to €24.92/t as the Conservative party won a working majority in the UK general election this week.
• Stability was provided to EU ETS prices this week as previous uncertainty over the outcome of the UK election was supported by relatively low auction volumes.

Wholesale price snapshot