Short-term energy prices tumble
Improving weather and comfortable supplies helped to reduce short-term prices. Gas demand has fallen by around 20% over the month.
Gas demand is mostly driven by domestic requirements for space heating; therefore, when temperature forecasts are low, prices rise. The day-ahead gas contract decreased 6% to a monthly average of 66.0p/th. Despite this fall, the contract is 15% higher than in the same period last year.
High wind speeds helped day-ahead power prices to fall by 6% as more expensive gas-fired power stations were pushed off the system. Prices averaged £48.2MWh over the month, and fell to £45.4/MWh early in May, the lowest level seen so far this year.