ICIS Power Index Q3 analysis shows market concern over UK generation amidst decline in wholesale power prices

03 October, 2014

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.

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Tara Sabanandan
Marketing Manager, ICIS

About ICIS

ICIS is the world’s largest petrochemical market information provider, with divisions spanning energy and fertilizers. Our aim is to give companies in global commodities markets a competitive advantage by delivering valuable information and analytics tools which enable our customers to identify and react to opportunities in markets which are constantly evolving. We have more than 30 years’ experience of providing pricing intelligence and news, forecast data, market analytics and independent consulting to buyers, sellers and analysts.

With a global staff of more than 600, ICIS has employees based in London, Houston, New York, Singapore, Dubai, Shanghai, Guangzhou, Beijing, Mumbai, Tokyo, Karlsruhe, and Milan. ICIS’s team of journalists is engaged in reporting market prices and news, and ICIS is fully committed to upholding the highest journalistic principles of verification, corroboration and authentication. ICIS has a compliance framework that along with its methodologies and business processes adheres to the requirements of the IOSCO PRA Principles.

ICIS is a division of Reed Business Information, part of Reed Elsevier Plc.

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