The average price for near-term gas delivery in October averaged 50.41 pence per therm, according to the price reporting agency, which is stronger than the September average of just 48.45 p/th due to higher temperature-led demand for gas-heating.
However, pricing levels are still 23 per cent lower than the same time last year when prompt-delivered gas averaged 54.10 p/th in October 2013, according to Platts.
“In 2013, traders were still filling natural gas storage at this time of the year. But this year, they finished restocking much earlier, and the weather was mild this October, which limited the expected winter increase in heating demand,” said Platts energy analyst Alex Froley.
“The price of natural gas for first quarter 2015 is now around 55.50 p/th, and for summer, 51.25 p/th. A year ago a trader would have had to pay 72 p/th to lock in first quarter gas for 2014, and 64 p/th for the summer,” he added.
UK electricity prices on the wholesale market were also lower in October this year than in the same month last year, but at a less dramatic 7.5 per cent discount, Platts price data shows.
Power prices have crept higher from September’s £41.72/MWh to £44.12/MWh but is still lower than the £47.80/MWh average seen last year.