The ICIS Power Index Q2 analysis highlights the influence of oil and European currency moves on the UK’s energy markets
London, UK, 3rd July 2015 – Wholesale UK gas and electricity market prices are at their lowest quarterly average in five years, according to an analysis of energy trends for Q2, published by ICIS, the independent authority on energy market pricing.
The falling oil price and strong supply from liquefied natural gas (LNG) earlier this year have pushed UK quarterly average gas prices down to their lowest level since Q1 2010, averaging 47.1 pence per therm (p/th), and the influence of gas on power prices has pulled the ICIS Power Index down to its lowest average since Q2 2010, at £44.72/MWh.
“The falling oil price and the currency impact from ‘Grexit’ fears are pushing down UK gas prices, and the effects are clear on the UK power price as well,” says Zoe Double, Head of Power, ICIS.
“The UK continues to draw liquefied natural gas from all over the world, as the number of trading counterparties means Britain can absorb more than other markets. Meanwhile, power prices are coming down as more renewable generation is installed.”
However, ICIS highlights the uncertainty over whether these price falls will continue into Q3. The UK is holding less gas in storage than last year, and continental gas markets may need more supply from the UK, as Dutch domestic production has been capped and Ukraine is likely to purchase more from European traded markets.
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 most recent Q1 analysis illustrated the increasing influence of the global gas markets on the UK’s energy world.
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 Q2 2015.
Tara Sabanandan, Marketing Manager, ICIS
Direct: +44 (0) 207 911 1713
ICIS is an independent price reporting agency focusing on global energy, petrochemical and fertilizer markets, and we have covered the complex UK electricity market for nearly two decades. Every day, we assess electricity contracts for more than 40 different delivery periods in the UK market alone. The analysis and data that we produce is widely used as a reference price in energy contracts.
It is our aim to give companies in global commodities markets a competitive advantage by delivering trusted pricing data, high-value news, analysis and independent consulting, enabling our customers to make better-informed trading and planning decisions.
With a global staff of more than 800, ICIS has employees based in Houston, Washington, New York, London, Montpellier, Dusseldorf, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Yantai, Tokyo and Perth. ICIS is a division of Reed Business Information, part of Reed Elsevier Plc.
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The ICIS Power Index (IPI) gives homes and businesses an insight into price trends on the UK wholesale electricity market.
The IPI is published daily by ICIS, an independent authority on UK electricity market pricing, and is available at no charge.
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