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.Find out more about the (IPI)
Marketing Manager, ICIS
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