ICIS Power Index Q3 analysis shows market concern over UK generation amidst decline in wholesale power prices.
ICIS, the global independent price reporting agency, has highlighted wholesale market concerns over the threat of gas and power supply shortages this winter, with the release of its third quarter (Q3) analysis of 2014 into the ICIS Power Index (IPI).
The IPI, which reflects wholesale power prices over a year of delivery, confirms a downward trend, but also reveals a recent peak due to concerns over a potential shortage of supply . ICIS’ data and sources show this is a result of more nuclear generation capacity being offline for the winter than expected. The news that these outages could last into December 2014 caused the IPI to rise by 2.5per cent day on day, when the news was announced on the 4th September – one of the largest single increases this year.
At the same time, ongoing tension between Russia and Ukraine has caused concern over security of gas supplies. While Russia does not directly export gas to the UK, any disruptions to its supplies on continental Europe has a powerful knock-on effect on the UK market.
“Energy companies are actively buying and selling electricity in the market right now for delivery over the next year,” said Zoe Double, Head of Power at ICIS. “Any price rises on the wholesale market could affect what consumers pay later on.”
The IPI delivers insight into the complex world of wholesale power prices for both households and industrial electricity consumers. In its first comprehensive quarterly analysis following the launch in August 2014, the index has shown that the conflict in Ukraine exacerbated fears over reduced UK power generation.
The ICIS Power Index is updated every working day and is freely available from the ICIS website, along with ICIS’ analysis of price trends and volumes during Q3 2014.Find out more about the (IPI)
Marketing Manager, ICIS
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