Having almost returned to levels seen before the conflict involving Iran, wholesale energy prices have risen again following the recent resumption of hostilities.
Gas prices remain more volatile than electricity because, with reduced gas exports from the Gulf, UK suppliers are facing increased competition from other international buyers.
Until the geopolitical situation calms down, this is unlikely to change.
On the generation front, renewables accounted for 44% of electricity production over the past week. However, the average price remained at £94.90/MWh due to the current archaic wholesale mechanism for arriving at prices, which is based on the highest price in any period.
| Gas: Gas prices continued to rise yesterday, with a mix of UK market fundamentals and geopolitics weighing heavily on the curve. Prices, however, have opened slightly below last night’s closing prices. Power: Power prices yesterday continued to follow the gas prices higher. This morning, power prices have moved lower upon opening. Oil: Oil prices were relatively static yesterday as traders hoped the renewed US/Iran conflict would be short-lived. Prices have fallen back slightly overnight but remain up around $5 /bl week on week. Carbon (EUAs): The ICE Dec-26 traded to €79.04/t yesterday. The contract opened this morning at €78.76/t. Carbon (UKAs): The ICE Dec-26 closed at £56.59/t yesterday. Opening this morning at £56.25/t. |
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