Professional Energy Purchasing

Price trends UK ENERGY MARKET

Price trends UK ENERGY MARKET

UK wholesale energy market prices continued to trend upwards in Q4 2016, as concerns over power and gas supply availability pushed quarterly average prices for UK energy to hit two-year highs.

The ICIS Power Index (IPI) average value of £45.937/MWh reached levels not seen since Q4 2014, up 7% from the previous quarter, and 16% year on year. The average quarterly gas price rose to its highest since Q2 2015 over the same period, to 45.018p/ th. This was a rise of 10% from the average Q3 value, and 22% year on year.

Prices were volatile during Q4 as well. The IPI hit its highest level in almost 12 months in early November, with UK and French power supply concerns boosting the UK electricity price to £49.10/MWh. The UK price for gas delivered over the next year was also affected as traders expected more demand for gas-fired power generation, reaching a 20-month high at 49.40 pence per therm (p/th).

The IPI finished 2016 32% higher over the year, while gas rose by 54%.

ipi-chart

This information was published courtesy of ICIS.

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