Berlin, Brussels join calls for ‘fundamental reform’ of EU power market
September 1, 2022
UK Energy Market Summary to Friday 23rd September 2022
September 26, 2022
Closing prices 16.09.2022
UK Government has promised to backdate ‘if necessary’ any support for UK companies through this winter. In an attempt to re-assure businesses with renewals this October the government said on Wednesday it would confirm further details of the business support scheme this week.
This update is expected to form part of chancellor Kwasi Kwarteng’s “fiscal event” or mini-Budget on Thursday or Friday.
Last week again saw huge volatility across Gas and Power markets. Power markets remained very illiquid, as uncertainty remains surrounding the true implications of the UK government interventions.
All NBP gas prices declined on Thursday following the news that Norway could offer lower gas prices to European nations on the short-term if they agree to pay more for gas in the future. As such, the spot price decreased by 15.1% to 10.6p/kWh. The price for Q4 22 delivery edged lower by 1.8% to 16.8p/kWh.
On Friday, all NBP gas prices decreased as Norwegian flows surged, demand declined and storage facilities were almost at full capacity. Thus, the NBP spot gas price fell sharply by 28.7% to 7.5p/kWh. The price for Q4 22 delivery dropped by 14.5% to 14.3p/kWh.
Other Energy Markets
A leak at an Iraqi terminal in Basra appeared to be limiting the flows of oil, which led to a slight increase in oil prices on Friday. Prices, however, declined on a weekly basis due to worries that major interest rate hikes will impede the growth of the world economy and the need for fuel. Thus, Brent crude settled 0.6% higher at $91.35 a barrel. At the same time, WTI crude was flat at $85.11.
EUA prices sharply increased on Friday after a three-week losing run as some short covering was prompted by the approaching September option expiration. Thus, EUAs expiring in December 2022 closed 2% higher at 73.27 EUR/tonne.
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