On Thursday, wholesale gas and electricity prices both dropped as market forces came into play.
On the generation side, the price of electricity remained high at over £80/MWh, which is disappointing. This was driven by renewables contributing just over 30%, meaning fossil fuels accounted for 27%, thereby pushing generation prices higher.
| Gas: Gas prices were mixed yesterday. Prices softened in the prompt as domestic demand fell to 153mcm/day. Curve gains were supported by a forecasted lack of renewable generation and gains in the gas and carbon markets. Power: Power prices rose yesterday, with support from rising UKA costs and gains in the gas market. In the prompt, wind generation has been revised downwards for next week to average 8.1GWs/day, which is still well above average. Oil: Oil prices rose by 1% yesterday. This was due to US crude draws and cuts to Russian exports outweighing the news of Chevron gaining US approval to renew production in Venezuela. Carbon (EU ETS): The ICE Dec-25 rose to €70.88/t yesterday. Opening at €71.07/t this morning, the contract is currently trading at €70.95/t. Carbon (UKAs): The ICE Dec-25 closed upwards yesterday at £50.30/t yesterday. The contract opened at £50.13/t this morning and is currently trading at £50.10/t at the time of writing. |
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