Friday 16 January 2015

Four year low for average UK power prices

Wholesale electricity prices in the UK dropped to a four year low on Thursday, suggests an index of power prices.

Prices on the ICIS Power Index, which lists the average price of trades, fell a quarter since the middle of 2011 and 16% since the start of 2014.

Jamie Stewart, ICIS Power Editor said: “On Thursday, the ICIS Power Index ended the day at £44.565/MWh, a new multiyear low and a 16% decline since the beginning of 2014.

“Longer term, the index was down 26% since mid-2011, underlining how far wholesale electricity prices have fallen over the last three years.”

Meanwhile winter gas prices on the NBP (National Balancing Point, the UK’s gas system) fell 29% from the beginning of 2014 to 48.95 pence per therm (p/th) on yesterday’s close, according to the price reporting agency.

Ben Wetherell, Head of Gas at ICIS suggested this fall, on top of a “more benign global gas price environment” may be an indication of what’s to come.