Chart of the week | Ramping up: demand levels, power prices and the outlook ahead

With the recent easing of lockdown measures allowing the re-opening of many parts of the economy, in this Chart of the Week, we take a look at how his has impacted electricity demand and power prices.

GB power prices for baseload electricity in recent weeks would suggest that the market has made a partial recovery already. The day-ahead power price (while typically remaining volatile) recently peaked at £33.10/MWh on 8 July; the highest price traded for the contract since pre-COVID lockdown. In a similar vein, front-month power contracts are no longer in backwardation, (future dated contracts are lower than current contracts), whilst the annual October 20 contact is at its highest price since mid-January.

With the recent easing of lockdown measures allowing the re-opening of many parts of the economy. We take a look at how his has impacted electricity demand and power prices.

To keep reading, please log in to your account

Log in
Contact us

Related thinking

Home supply and services

Domestic switching falls as the savings gap is squeezed

With day-ahead gas reaching an all-time high of 187.50p/th as of 15 September, it has been a record-breaking summer for wholesale energy prices. This Chart of the Week explores the impact these high prices are having on domestic tariffs and consumer switching behaviour.

Low carbon generation

A podium finish: ROC banking in CP19

The Renewables Obligation (RO) Compliance Period (CP) 19 (2020-21) has been unusual in the scheme’s history in light of the impact of the COVID-19 pandemic. As we are in the so-called “compliance season” for CP19, we reflect on the last year and the importance that Renewable Obligation Certificates (ROC) “banking”...

Commercial and market outlook

Chart of the week | Green recovery in Italy?

Issue 229 of ‘Chart of the week’ showcases Italian prime minister Mario Draghi’s economic recovery plan which was presented to the country’s parliament. The appointment of Mario Draghi, former head of the European Central Bank, as prime minister on 13 February has provided the country with a unique opportunity to...

Low carbon generation

Chart of the week | Higher or lower? Transitioning to the UK ETS

Carbon prices, especially the EU Emission Trading System (ETS), have experienced considerable volatility over the last year, influenced first by COVID-19, which saw prices crash, and more recently by expectations of increased EU climate ambitions, driving prices to record highs. In this Chart of the Week, we consider the potential...

Commercial and market outlook

Chart of the week | UK carbon emissions were down 10% in 2020

BEIS published its provisional 2020 UK greenhouse gas emissions figures on 25 March. In this 'Chart of the week', we consider the significant impact of COVID-19 and the resulting lockdowns in the UK on carbon emissions last year. Carbon emissions in the UK are provisionally estimated to have fallen by...

Low carbon generation

Chart of the week | REGO rebound: Prices to rise on COVID recovery

We recently published the findings from the January 2021 edition of our Green Certificates Survey. The survey, which had 62 respondents from 59 distinct organisations, is designed to provide greater market transparency for Renewable Energy Guarantees of Origin (REGO), Continental Guarantees of Origin (GoOs) and Renewable Gas Guarantees of Origin...

Power and gas networks

Lower prices but a similar story for those setting the price

2020 was one for the books with plenty of interesting events happening worldwide and also in the energy markets. For the NEM specifically, it was a time of significant changes in price outcomes compared to the previous years of comparatively higher prices. However, now comes the question of whether NEM...

Commercial and market outlook

Chart of the week | Saying goodbye to 2020

While lockdown may have been the most used word overall in 2020, in the energy sector net zero would certainly give it a run for its money. The raft of policy announcements, particularly in the last few weeks, will lead to a dramatic change in sector especially with moves to...