Wholesale gas and electricity prices continued to rise on Thursday, albeit the wholesale prices still remain relatively low and the increases we have seen since end of September are nowhere near the levels historically seen this time of the year.
The price of electricity generation in the past week rose and was £72.89/MWh. Fossil fuels accounted for more than 30% of generation in the past week, with renewables sitting at 44.6%.
At a retail level we have seen softening of prices over the past month but with the increased wholesale commodity cost, combined with the increases in non-commmodity costs, retail prices are rising slowly.
| Gas: Gas prices rose yesterday with forecast of a cold snap across the end of December and early January weighing on prices. The impact of conflicts in Ukraine and Venezuela upon oil prices also had a bullish effect. Power: Power prices also rose yesterday, tracking gains in the gas market. Renewable output is expected to fall as we approach the end of the year. A movement upwards in Carbon UKA prices also pushed power higher. Oil: Oil prices fell back slightly yesterday with some hope of progress in Ukraine peace talks. Concerns of a conflict in Venezuela remain though. Carbon (EUAs): The ICE Dec-26 closed at €84.49/t last night. The contract opened today at €84.73/t. Prices pushed significantly higher yesterday driven by the EU saying that the UK would not be exempt from a Carbon border levy. Carbon (UKAs): The ICE Dec-26 rose to £64.68/t yesterday. The contract opened at £64.99/t today. |
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