According to market analysis ICIS, UK wholesale energy market prices continued to rise in the last quarter of 2016 because of concerns over gas storage levels and tighter power margins.
Updated on 11th January, the ICIC Power Index found that the cost of electricity averaged as£45.937/MWh over Q4 of 2016, this is the highest quarterly average in two years.
Zoe Double, the company’s head of power, said: “The UK’s electricity margin continues to cause alarm, leading to high short-term prices and encouraging market participants to factor in greater price risk for next winter.”
Gas for delivery over the next year averages 45.018p/th, the highest it’s been in 18 months. This is due to technical issues preventing the UK’s largest gas storage facility from operating at full capacity during last year, which in turn pushed UK gas reserves to their lowest level in more than 20 years.