Weekly Market Update - Power prices reach a month high of £146/MWh

Head of Sales Trading, Fanos Shiamishis, reports on energy market activity, covering the period 13th – 20th June 2023. On our end-of-day pricing tool, The Source, we published an in-week high of £146.18/MWh for the Winter-23 seasonal power price on 15th June. In this blog, Fanos shares the market news and updates from the last week. 

Last Tuesday, news of an outage extension at the Norwegian gas processing plant Nyhamna saw prices rally and impacted export capability from the Ormen Lange and Aasta Hansteen gas fields. The original outage was pushed back a month to Mid-July with potential cuts to export capacity by 79.8mcm per day. 

European gas carried on its rally to reach a month high on Wednesday. Power also firmed up as carbon reached a month high. N2EX base day ahead closed £12/MWh higher day on day as prompt gas was firm while wind generation weakened.

European gas was volatile for the third consecutive day on Thursday due to reduced unavailability at Norwegian gas fields and a step-up in demand from the heatwave, the market, however, corrected sharply and almost closed flat day on day. Front month NBP traded in a 32ppth wide range while Winter-23 contract had a 33p swing. Power was just as volatile and traded a wide range. N2EX day ahead cleared at a 1.5 month high on the baseload as gas surged and wind generation remained sub 2GW.

Friday afternoon saw a heavy sell off in gas, providing some clear direction for power and a similar sell off was triggered across Q3-23 to Summer-26.

Opening indications yesterday were very bearish with TTF and NBP both offered lower than Friday’s close.  By 11am, power offers were sporadically offered, also following the softer outlook.  Reasonable power volumes traded out to Winter-24 within a £4 range and continuing to firm up to market close.