Gas Prices Depress Power Prices
Wholesale prices move lower. The T-1 Capacity Market auction clears at lowest ever price, whilst Eggborough coal power station announces closure.
Last week we saw both electricity and gas contracts continue in their downward trend, with the gas market being a key driver of the power market. It was part of an energy domino effect as Brent crude oil’s decline influenced the gas market. Outside of the wholesale market, the T-1 capacity auction cleared at it’s lowest price since it was first introduced, and we saw the closure of yet another coal-fired station.