Chart of the week | Will the wholesale bulls finally run out of steam?

In light of the continuing running of the bulls, this week’s Chart of the Week offers a wholesale market snapshot. It observes what has been driving recent power, gas and commodity prices. It then seeks to offer an outlook for this bullish momentum.

Though the chart shows day-ahead gas and power prices are currently towards the bottom of the yearly price range. Typically it would be expected that near-term prices would fall as demand eases throughout the summer. However, this isn’t the case this summer. At the time of writing, day-ahead power and gas prices are 42.0% and 55.5% higher than the same period last year respectively.

To keep reading, please log in to your account

Alternatively, please sign up to receive free market insight online and direct to your inbox

Related thinking

Home supply and services

900,000 domestic customers impacted by SoLR over last two years

Across 2020 and 2019, 887,000 domestic customers were supplied by a company which exited the market via the Supplier of Last Resort mechanism (SoLR). On average, this is around 1.7% of the market per year. In 2018, 551,000 domestic customers were supplied by a company which entered the Supplier of...

Home supply and services

Chart of the week | Default tariff cap set to rise by at least £100 for coming winter

The default tariff price cap for a typical dual fuel direct debit customer looks set to increase by over £100 for the Winter 2021-22 period, according to an initial assessment from Cornwall Insight’s bi-annual tariff cap predictor. The latest forecast for the cap indicates that it will increase to around...

Low carbon generation

Australian Chart of the week | Hungry ducks – Can we flatten the belly of the ducks?

Rooftop solar installations have continued record growth in 2020, as reported by Clean Energy Regulator (CER) in its latest December Quarterly Carbon Market Reports. In the report, 3GW of rooftop solar capacity was installed in 2020, which is a year-on-year increase of 40%. This brings the total rooftop solar capacity...

Power and gas networks

Australian Chart of the week | Green hydrogen costs plummet, LNG prices soar

The ACCC currently calculates the LNG netback price as the price a gas exporter could receive for gas exports excluding the costs to convert and ship the gas. Asian cold weather and supply bottlenecks have driven the February LNG netback price to nearly $20 a gigajoule, more than double the...

Power and gas networks

Australian Chart of the week | All gas demands are equal; but some are more equal than others

One of the key objectives of the federal government’s proposal for a ‘gas-led recovery’ - besides building a 250MW gas-powered generator (GPG) - is reducing gas prices through increased supply to domestic consumers. The proposal highlights the need to invest in domestic gas exploration and transportation, as well as create...

Commercial and market outlook

Chart of the week | Ramping up: demand levels, power prices and the outlook ahead

With the recent easing of lockdown measures allowing the re-opening of many parts of the economy, in this Chart of the Week, we take a look at how his has impacted electricity demand and power prices. GB power prices for baseload electricity in recent weeks would suggest that the market...

Energy storage and flexibility

Australian Chart of the week | Down, down, prices are down… but is it sustainable?

Following a comparatively mild Q1, electricity prices have fallen significantly in Q2. While a drop in price is expected as we move from peak demand conditions in Q1 to the shoulder Q2, the surprising element is the level to which prices have fallen. Average quarterly prices in Q2 2020 were...

Low carbon generation

Chart of the week | Free fallin’: Green generator values hit hard by COVID-19

Since the COVID-19 outbreak, there has been a downturn in GB power demand and an associated slump in wholesale prices. This has has resulted in a sharp decline in green generator revenues. However, the magnitude of these impacts depends heavily on a generators’ routes to market and trading choices. We...