Professional Energy Purchasing

Market Update

Prices in the power market have come under some downward pressure lately. Wind generation has been consistently high and gas and carbon prices fell yesterday. This has reduced the cost of generation and has also meant that power output is less reliant on gas for generation. Mild temperature outlook is also keeping expected demand down and means that the gas market should stay well supplied, reducing the risk of any gas price spikes.

Carbon prices fell significantly yesterday following recent gains. Downward pressure came from the combination of market participants looking to lock in on profits and even though a proposal should be implemented in Q2 this year that will limit available carbon allowances, an announcement that free allocations will be provided this year which will reduce the demand for allowances.

Sterling strengthened yesterday against the euro on the back of a strong UK economy and oil prices fell as there were further signs that the Chinese economy is slowing down. These will both provide some downward pressure on longer dated contract prices.

Energy Efficiency & Procurement Consultants