Price reporting agency Platts said the average price for near-term UK power in February was £42.51/MWh, compared to Platts’ continental power index of £31.41/MWh which was 21.25 per cent higher than January’s average for markets across North West Europe.
European markets bounced back in February “as colder, calmer weather conditions combined with rising natural gas and carbon prices”, Platts said.
In the UK the gains were mostly led by stronger gas prices which reacted to last month’s cold snap and news that future supply from Russia and the Netherlands might be curtailed.
“In the middle of the month the Dutch government announced new limits on production from the country’s giant Groningen gas field,” Platts energy analyst Alex Froley said.
“Then at the end of the month there were growing tensions over the possibility of an interruption to Russian gas supplies through Ukraine. However, supplies have remained healthy, and there were no major cold snaps and prices dropped back down again in early March,” Froley added.
The power markets were also supported by a stronger carbon market which rose following a key vote in the European Parliament’s environment committee on reforming the bealguered market, said Platts European power editor Henry Edwards-Evans.
“The vote supported early removal of surplus carbon allowances from the and saw the price of carbon rise above €7/metric tonne carbon. This is a long way from levels that would affect investment, but still served to trim coal plant margins,” he said.