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Energy Prices (early April 2015)

Early April 2015

Electricity:  Colder and Dryer conditions are expected for the UK for the April-June period, which may increase power demands.

The 2,400 MW coal fired power station at Longannet is set to close at the start of 2016 following failure to win a tender with the national grid.

Coal Prices are forecast to stay low in the face of reduced Chinese buying in the face of weakening economic conditions there as well as a shift towards cleaner power.

The Southwick Estate Solar Farm -the largest in the UK at 48 MW- has been connected to the grid.

Gas: Annual maintenance on several large gas fields and processing plants in Norway could reduce exports to the UK, combined with the forecast colder weather could push prices upwards.

A maintenance shutdown at the Ras Laffan LNG terminal in Qatar has ended, so shipments should start feeding through again, keeping pressure on prices.

The UK government’s latest budget announced last month has re-structured the tax regime on the North Sea gas and oil plants, introducing new incentives to boost investment by an anticipated £4 billion, increasing production by 15% over the next five years.

Summary position:

Oil $56.62/barrel

Coal $56.75/MT

EUA 14 €7.17/TCO2

Gas 48.23p/th Oct 15

Gas 48.18p/th Apr 16

Electricity £45.60/MWh Oct 15

Electricity £45.68/MWh Apr 16