Annual electricity reaches an eight-month low
Annual electricity and gas prices dropped last month as warmer weather arrived and supply concerns faded.
A reduction in carbon, coal, gas and oil prices pulled down seasonal electricity over the month. The annual October 2013 contract fell to an eight-month low of £51.7/MWh on 30 April. Month-on-month the contract fell 1.5% to £52.9/MWh, 2% below the same period in 2012.
Annual gas prices slipped as lower LNG demand in Asia led to increases in LNG deliveries to the UK. This alleviated the supply concerns that pushed prices up earlier in the year allowing the annual gas contract to fall 1% to a monthly average of 68.5p/th.
Oil prices dropped below $100/bl in April following concerns about slowing economic growth in China. US month-ahead Brent crude oil was down 5% to a monthly average of $103.9/bl.
Carbon prices fell to an all-time-low of €2.7/t on 18 April following the European Parliament’s rejection of measures back load a significant number of carbon allowances under the EU Emissions Trading Scheme.
But prices did not fall as low as some feared as demand for emissions in the power sector remained strong and German chancellor Angela Merkel made remarks about the need for a higher price for carbon.