Wholesale gas prices at 10-year lows
Analysis by ICIS has revealed that UK wholesale gas averaged 32p/th in the first quarter of the year––the lowest quarterly average in 10 years. The figure was 12.5% below the average for the fourth quarter of 2015. Average wholesale power prices for the quarter stood at £35/MWh, a nine-year low, and down 12% on the average for Q415. Gas demand for the first quarter rose 3% year-on-year at 26.8bcm, although mild winter temperatures kept household demand lower. Some of this lower residential heating demand was offset by additional gas-fired power generation during the first quarter, which has helped to support gas and power prices for long-term delivery.