Energy Wholesale Market Review - Week Ending 6th August 2021 - EDW Technology
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Energy Wholesale Market Review Week Ending 6th August 2021 EDW House, Radian Court, Knowlhill, Milton Keynes, MK5 8PJ. Phone: +44 (0)8448 802 489 Email: info@edwtech.com Website: edwtech.com www.edwtech.com Page 1 of 6 Week ending 6 August 2021
Contents
Baseload electricity 3
Peak electricity 3
Seasonal power prices 4
Commodity price movements 4
Supplier tariff movements 4
Wholesale price snapshot 5
About EDW Technology Limited 6
www.edwtech.com Page 2 of 6 Week ending 6 August 2021Headlines 06/08/2021
Retaining their bullish momentum, the majority of gas and power contracts reported gains this week. Day-ahead gas
rose 6.9% to 109.00p/th, finding support from lower UKCS production and a drop in Norwegian imports during the
week, alongside forecasts of increased gas-for-power demand at the week’s end. Despite reducing mid-week, day-
ahead gas prices reached a more-than three-year high on 2 August of 109.00p/th, rising back to this level on Friday.
September 21 gas rose 8.8% to 111.15p/th, and October gas traded 7.6% higher at 112.42p/th. All seasonal gas
contracts saw price rises this week, up by an average of 8.6%. Following its gas counterpart, day-ahead power went
up 4.0% to £105.00/MWh, while also finding support on Friday from forecasts of weaker wind output at the start of
next week. September 21 power increased 10.3% to £110.00/MWh and October 21 power elevated 2.8% to
£104.50/MWh. Seasonal power contracts averaged an increase of 9.6% this week. Brent crude oil slipped marginally,
down 3.2% to average $72.50/bl. Prices were weighed on news of the rising prevalence of the Delta variant in the
US and China, and amid news of the potential for fresh travel restrictions across several countries. Carbon prices
continued their upwards trajectory this week, with the EU ETS up by 3.6% to average €55.32/t, and the UK ETS
boosting 7.5% to average €46.64/t, finding support from a tight European gas market.
Baseload electricity
Day-ahead power went up 4.0% to £105.00/MWh, Q421 power traded 10.3% higher to £115.00/MWh.
with forecasts of weakened wind output forecast for The annual October 21 contract lifted 11.3% to
early next week lifting prices. £93.00/MWh, 101.6% higher than the same time last
September 21 power boosted 10.3% to year (£46.13/MWh).
£110.00/MWh and October 21 power increased
2.8% to £104.50/MWh.
Forward curve comparison Annual October contract
Peak electricity
Day-ahead peak power was up 15.3% to The annual October 21 peak power went up 19.8% to
£109.00/MWh, taking direction from its baseload £121.80/MWh.
counterpart. This is 95.1% above than the same time last year
September 21 peak power rose 4.4% to (£51.81/MWh).
£106.50/MWh, and October 21 peak power increased
0.1% to £111.60/MWh.
Forward curve comparison Annual October contract
www.edwtech.com Page 3 of 6 Week ending 6 August 2021Seasonal power prices
Seasonal baseload power contracts Seasonal baseload power curve
This week all seasonal power contracts went up, All seasonal peak power contracts rose this week,
rising 9.6% on average. up 21.6% on average.
Winter 21 and summer 22 power contracts lifted Winter 21 peak power gained 18.6% to
10.9% and 11.8% respectively, to £112.00/MWh and £121.80/MWh, while summer 22 peak power
£74.00/MWh. increased 21.7% to £80.35/MWh.
Commodity price movements
Oil and coal Carbon (UK and EU ETS)
Brent crude oil slipped 3.2% to average $72.50/bl, Carbon prices reported healthy gains this week, with
this week. the EU ETS up 3.6% to average €55.32/t. UK ETS
Rising Covid-19 cases, in particular the prevalence of carbon boosted 7.5% to average €46.64/t.
the Delta variant in the US and China weighed on Carbon prices continue to find support from buoyant
prices this week, with the potential for fresh travel commodity markets, but were also supported by a
restrictions being imposed in several countries. tight European gas market this week
At the week’s end, rising tensions between Israel and
Iran provided some support to prices.
Also providing support, economic projections from
UBS showed expectations for Brent crude prices to
resume their upwards trajectory, trading between
$75 and $80/bl in the second half of 2021.
Supplier tariff movements
Four suppliers increased the price of their cheapest available tariff between 24 July and 31 July. Scottish Power
increased its cheapest available tariff by £139/year on average to £1,370/year on average, the greatest increase in
that period. Its cheapest tariff was its Fixed Price December 2022 MI tariff. PFP Energy increased its cheapest
available tariff by £129/year to £1,086/year on average. Together Energy was the only supplier to reduce the
price of its cheapest tariff between 24 July and 31 July, with a decrease of £48/year to £1,085/year on average.
www.edwtech.com Page 4 of 6 Week ending 6 August 2021Wholesale price snapshot
Gas (p/th) Electricity (£/MWh) Coal EUA carbon UKA carbon Brent crude
Day-ahead Year-ahead Day-ahead Year-ahead ($/t) (€/t) (£/t) ($/bl)
Last week 6 Aug 21 109.00 89.12 105.00 93.00 98.00 56.74 48.55 71.62
Two weeks ago 30 Jul 21 102.00 80.68 101.00 83.58 95.50 53.00 43.65 75.95
Four weeks ago 9 Jul 21 90.50 76.44 97.00 81.63 88.50 53.88 45.00 74.80
Last year 7 Aug 20 19.15 38.55 34.45 46.13 59.50 26.33 N/A 44.89
Year-on-year % change 469.2% 131.2% 204.8% 101.6% 64.7% 115.5% N/A 59.5%
12-month high 109.00 89.12 195.00 93.00 98.00 58.16 51.75 77.32
12-month low 18.50 36.85 32.75 44.45 53.50 23.02 42.40 37.19
115 210 100 53
95 100 60 78
105 95
90 190 95
90 54 51 72
95 85 90
170
85 80 85
85 66
150 80
48 49
This table shows the prices last week 75 75
80 60
compared with prices from the previous week, 70 75
65 130 42
month and year. The graphs show the position 75 47
65 70
of last week's prices with a red X and the 55 110 54
range of prices over the year is represented by 60 65 70 36
45 45
the black line. 55 90 65 48
60
35 30
50 55 60
25 70 43 42
45 50 55 24
15 40 50
45 50 36
5 35 18 41
30 40
www.edwtech.com Page 5 of 6 Week ending 6 August 2021About EDW Technology Limited
EDW has an extensive history of developing, implementing and supporting its 'best of breed' retail electricity
software solutions.
In 2000, EDW began building a revolutionary new electricity software platform to support the rigorous demands of
the UK's deregulated electricity supply market – a market characterised by rapidly changing government regulation,
business processes, market rules, industry dataflows and customer demands. EDW were founded as a provider of
high quality, end-to-end IT services and we have remained true to that aim ever since, servicing a range of
companies in the energy industry.
For over 20 years, our software product ERS has empowered business electricity suppliers to transform customer
experience, improve business efficiency, reduce costs to serve and improve profitability.
EDW has a UK based team of 85 employees working from the EDW offices in Milton Keynes.
Industrial and commercial billing specialists
The industrial and commercial electricity supply market has unique business requirements that need to be serviced
with a specialised set of IT system capabilities. Sophisticated business customers are willing to actively engage in the
management of their energy accounts and solutions need to provide tools that support enhanced service interaction.
EDW has gathered an extensive knowledge of the industrial and commercial market sector that enables the delivery
of a powerful set of system capabilities essential to your requirements to service this complex and demanding
market sector.
EDW Technology Limited
EDW House
Radian Court
Knowlhill
Milton Keynes
MK5 8PJ
UK
Tel: +44 (0) 8448 802 489
Fax: +44 (0) 8448 802 487
Website: www.edwtech.com
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