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UK gas and power prices down 8 per cent in February

UK gas and power prices were down 8 per cent in February when compared to the previous month, according to price reporting firm Platts.

The National Balancing Point day-ahead gas price averaged 29.54 pence per therm over the month, a year-on-year decrease of 41 per cent. The effects of a cold snap in the final week of the month was more than offset by healthy supplies.

Average month-ahead gas prices dropped 9 per cent on January to 29.17 pence/therm, as a “bearish prompt-delivery environment, combined with low oil prices, put pressure on the near curve”.

At £33.23/MWh, average day-ahead power prices were down 22 per cent year-on-year. Warmer than average temperatures temperature saw demand fall to 25TWh, a 2TWh reduction on January. Imports from the rest of Europe climbed 11 per cent to 2TWh, while gas-fired generation fell 10 per cent to 9TWh.

The price falls in February were even more pronounced on the continent. European day-ahead power prices dipped to €24.97/MWh, a 24 per cent reduction on January and a year-on-year decrease of 42.5 per cent.

The picture was similarly bearish for gas as “Russian gas flows to Europe hit record levels and exports from west Europe to Ukraine fell”. The day-ahead gas price on the Dutch TTF, “continental Europe’s most liquid gas trading hub”, was 10 per cent lower than in January.