Wholesale gas and power prices fall further with mild winter

14 January, 2016
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The ICIS Power Index 2015 analysis shows UK gas and power price levels losing more value during the Q4 winter months

London, UK, 14th January 2016 – Wholesale UK gas and electricity prices have weakened further with a mild winter and lower commodity prices, according to analysis of the energy markets published by ICIS, the independent authority on energy market pricing.

UK power prices finished the year at five-year lows. The ICIS Power Index (IPI) finished 2015 at £36.764/MWh, down 23% over the year. Gas prices for delivery in the next year lost more value, down by 34% over the same period to finish 2015 at the lowest levels in six years, at 32.15p/th.

Milder winter temperatures have helped to keep prices down, and more gas from around the world in the form of liquefied natural gas (LNG) is expected to come to the UK, as more production capacity comes on-stream in 2016.

‘With a deep liquid gas market and plenty of capacity to regasify LNG imports, Britain is anticipated to be a key beneficiary of the global LNG oversupply,’ says Ben Wetherall, Head of Gas at ICIS.

‘Current market prices for delivery two to three years ahead show that participants expect UK wholesale energy prices to remain low,’ says Zoe Double, Head of Power at ICIS. ‘But power prices have fallen less than gas because there is less spare supply capacity, with thermal generation continuing to struggle with profitability.’

The ICIS Power Index delivers independent insight into the complex world of wholesale power prices for both households and industrial electricity consumers, based on real market trading.

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 Q4 2015.

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Media Contact

Tara Sabanandan
Marketing Manager, ICIS
tara.sabanandan@icis.com
 

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.