Electricity & Gas Prices Slip As Demand Falls
Month-on-month annual power and gas prices fell in May as a result of increased temperatures and reduced coal prices. Lower carbon, coal, gas and oil prices have pulled annual power contracts lower. The monthly average annual October 2013 contract fell 2.3% to £51.6/MWh. This is 1% below the 2012 average of £52.9/MWh but 1% above the May 2012 average of £51.9/MWh.
Annual gas prices also slipped as LNG supply concerns faded and oil prices remained low.
The monthly average annual October 13 gas price decreased 1.8% to 67.4p/th, a 5% increase compared to May 2012 when the average price of annual gas was 64.1p/th.
On average oil prices were flat.
The monthly average price of Brent crude oil was $103.1/bl, 0.1% lower than April.
A week economic outlook placed downwards pressure on oil prices, but they were supported by tensions in the Middle East.
The European Parliament’s rejection, on 16 April, of proposals to back-load 900mn carbon allowances under the EU Emissions Trading Scheme pulled carbon prices to an all-time low of €2.7/t. Prices have since recovered slightly after EU ministers re-affirmed their continuing support for the proposal.
Catalyst Business Energy Market Brief June 2013