On Thursday, wholesale gas and electricity prices continued their upward pressure after the brief respite on Wednesday. Given all the claims and counterclaims, this is not totally surprising.
On the generation front, generation prices hit almost £150 per megawatt-hour in the past week, which is a significant increase from the £116 per megawatt-hour seen just one week ago. Gas accounted for 34.5% of production, with renewables at 30.8%. Wind was at 18.1% and nuclear at 15%, so there is a good spread, but as you know, the price is governed by the highest individual component, and at the moment, that is gas.
Until there is a resolution to the situation in the Strait of Hormuz, prices will continue to be volatile and high.
| Gas: Prices continued to rise yesterday in the gas market. Geopolitical risk continues to drive the market upwards as the US President threatened economic sanctions on any nation working with Iran. Renewed concerns on Norwegian supply availability have compounded gains. Prices have continued to rise in the morning open. Power: Power prices continue to track the wider energy mix and the gains made in the gas market. Prices have continued to be bullish after the market open this morning. Oil: Oil prices rose by 2% yesterday after the US President threatened economic sanctions against any nation supporting Iran. The UAE has suspended any financial ties to Iran until further notice. Prices have opened slightly softer this morning but are on track for a weekly gain. Carbon (EUAs): The ICE Dec-26 closed at €82.45/t last night. The contract opened this morning at €82.15/t. Carbon (UKAs): The ICE Dec-26 traded to £58.97/t yesterday. Opening this morning at £59.09/t. |
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