14.09.2016

Utility Market Report September 2016

Market Insight and News

UK Power prices softened throughout the month of August after a volatile end to July and the beginning of the month. Power prices remained volatile throughout the month, often
fluctuating in positive and negative territory day on day with large swings in wind and solar generation increasing supply and demand issues on the system.

An increase in demand, coupled with low wind generation led to the need for expensive gas generation to ease the generation gap and leading to bullish prices. Power prices started to soften in line with NBP gas prices and increased nuclear capacity. NBP gas prices also softened over the month despite starting the month in bullish fashion due to a series of Norwegian outages. Gas prices fell further throughout the month as exports to the continent fell and imports of LNG increased to ease any supply and demand concerns. Day-ahead prices saw the most significant decreases over the month with low exports and reduced power demand towards the back of the month being the main contribution.

Current Oil Prices

 ICE Brent Nov-16 46.69 $/bbl
 ICE Gasoil Sept-16 408.75 $/tonne

Utility News Highlights:

  • ESOS Absentees to be investigated by the Environment Agency
  • Scotland calls on UK government to support hydropower
  • BP signs second shale gas deal with Chinese firm
  • Shell to sell Gulf of Mexico oil assets
  • Grounded Transocean oil rig successfully refloated

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