Monthly Archives: November 2007

Wholesale electricity prices continue to power ahead…

Following a 35% increase since September 2007, wholesale gas prices (1 year forward) have stabilised over the past month at around the 1.75p/kWh level.
In contrast, wholesale electricity prices (1 year forward) moved sharply ahead ending up 5% on the week and 10% on the month. The main drivers were a 28% increase in coal prices for Q1 2008 delivery over the past month, and rising carbon emissions prices. Wholesale electricity prices are now only 6% below their 2006 peak. Continue reading

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Wholesale and retail energy prices cross over…

Wholesale gas prices (1 year forward) have jumped by 35% since the beginning of September 2007. They are now 87% above their Feb 2007 lows, although still 33% below their 2006 peak.
Wholesale electricity prices (1 year forward) have jumped by 22% since the beginning of September 2007. They are now 81% above than their Feb 2007 lows, and only 13% below their 2006 peak.
Current forward wholesale gas prices are indicating a modest risk of a small increase in Standard gas prices. Current forward wholesale electricity prices are still indicating scope for a modest price cut from current levels. On balance we do not see any real justification for an increase in Standard gas prices at the current time but we are watching the situation closely. Continue reading

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