Milder weather and strong wind speeds reduce short-term power prices
Despite higher day-ahead gas prices, lower than expected demand and high wind output pushed short-term baseload power prices downwards. Month-on-month the day-ahead power contract fell 5.9% to average £49.7/MWh in December. The contract is now 14% higher than the 2012 average of £43.7/MWh.
In contrast, short-term gas prices increased during the month as a result of low LNG deliveries and outages at Norwegian gas facilities. Day-ahead gas prices climbed 1.9% to average 69.4p/th in December, compared to 68.1p/th in November.