The energy market update for April 2021 is detailed below.
Key Market Drivers: Electricity
Power contracts experienced mixed price movements in March, with losses in day-ahead prices but gains in all other forward contracts. Day-ahead power fell 18.8% in March to average £60.07/MWh, weighed on by a reduc-tion in its gas counterpart, seasonally warmer tempera-tures and associated lower demand levels and higher levels of wind output for much of the month.
Seasonal power contracts up to and including summer 23 rose 4.4% on average in March, supported by bullish gas and international commodity markets, particularly carbon prices. EU ETS carbon prices hit an all-time high of €43.63 on 18 March.
Key Market Drivers: Gas
In March 2021, the majority of wholesale gas contracts rose with the only exception being day-ahead prices. The day-ahead gas contract lost 15.8% to average 44.85p/th in March, owing to warmer temperatures and more com-fortable supplies to the UK, particularly from LNG.
On average, seasonal gas contracts from summer 21 to summer 23 were 2.7% higher in March than in February. Winter 21 rose 3.4% to average 52.43p/th, while the sum-mer 21 contract rose 0.9% to 42.48p/th, finding support from higher oil, carbon and LNG prices, each of which has impacted the gas market of late.
For more details about gas or electricity please give our team a call on 0333 5777 300.