Day ahead power prices 300% higher than last year

Day ahead power prices 300% higher than last year: On Monday wholesale energy prices hit the 2nd-highest level since 2018.

The low wind speeds drove energy prices to over £2,000 per MWh.

Cornwall Insight said day-ahead energy costs on Monday were more than 300% higher compared to the same time last year.

The consulting company said that the market could see prices increase even more next week.

In the last 3 months, rocketing energy prices have forced suppliers either to raise their gas & electricity prices or leave the market.

Sam Peek, Analyst at Cornwall Insight said: “Power prices continue to take direction from particularly volatile near term gas prices at the moment. The day-ahead gas price rose 17.50pence per therm on Sunday by way of example, with uncertainty surrounding Russian flows into Europe.”

“For power prices more specifically, we still have relatively tight supply margins heading into winter. Periods of lower wind output & correlated higher demand have seen power prices fluctuate significantly on a day-to-day basis.

“Just yesterday, day-ahead power prices dropped £75.50 per MWh to £174.50 per MWh on expectations of higher wind outturn today. This highlights the volatility we are seeing in wholesale power prices at the moment.”

Day ahead power prices 300% higher than last year