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Energy Prices (Mid June 2016)

Mid June 2016

Electricity:  

Annuals are rising to their highest levels since late October on the back of predictions of tighter winter margins following recent plant closures, persistent gas supply issues and oil market strength, while short-term levels have been bolstered by low wind farm output and the quicker-than-expected closure of one coalfired power station.

The 1000 MW Rugeley coal-fired plant, which was due to close at the end of June, shut down on June 8th ─ having used up all of its coal stocks earlier than expected. This was one factor that helped to push Day-ahead UK power prices back up as high as £40/MWh by mid-June.

Gas: .

Some pre-Brexit referendum buying has been reported, amid a perception that a weaker pound following any “Leave” vote could push up prices by raising gas import costs.

Norwegian oil and gas workers are threatening to strike in early July if a final round of talks in late June fails to resolve a pay dispute. If it goes ahead it is likely to affect North Sea oil and gas output.

Summary position:

Oil $49.76barrel

Coal $52.85/MT

EUA 16 €5.87/TCO2

Gas 38.68p/th Oct 16

Gas 39.75p/th Apr 17

Electricity £40.48/MWh Oct 16

Electricity £39.50/MWh Apr 17