This morning, the Electric wholesale (Day Ahead) prices have opened up 26.40% lower than this time last week with Gas (Day Ahead) 42.20% lower.
While Apr-12m gas and electricity futures both fell over 3%, front-month electricity did price in a 4% gain. Markets took a pause last week as negative tension pulled down much of the curve. The European Union was looking into a potential wholesale price cap or alternative index to the Dutch TTF, along with recessionary worries and storage facilities that were getting close to capacity (enabling more supply to be released rather than hoarded).
A price limitation on the wholesale gas market runs the danger of reducing supply. For instance, a cap on LNG would limit the EU's capacity to compete in that market. There is also a risk that countries will export to more expensive countries where a cap does not exist, leaving the non-exporting nation short.
The goal of becoming 100% fossil-free has replaced becoming 100% renewable, according to the new Swedish administration, who also ordered that the national energy corporation start planning operations for a new plant and may restart two existing ones.
This morning's market performance is gloomy as Nov. 22 Gas is down 8.6%, Dutch TTF is down 7.68%, and European Carbon is discounted by 0.64%.
How the market has opened each day:
DAY AHEAD PRICES | Gas (pence per therm) | Electric (£ per MWh) |
10/10/2022 | 173.00 | 197.00 |
11/10/2022 | 175.00 | 170.00 |
12/10/2022 | 185.00 | 195.00 |
13/10/2022 | 148.00 | 181.50 |
14/10/2022 | 127.50 | 155.00 |
17/10/2022 | 100.00 | 145.00 |
7 day averages
Electric (£ per MWh) 173.92
Gas (pence per therm) 151.42
The below shows how the market compares to the previous week, month and year.
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