Introduction
The growing role of wholesale traded energy markets across Europe creates a greater need for players throughout the value chain to be aware of the latest market movements and developments. From the wellhead or power station gate to the end-user, volatility in the spot and forward price of power and gas is creating an increasingly challenging environment for all market participants.
Scope of this report
- An examination of the wholesale gas price trends in Europe's three key markets - the UK NBP, the Zeebrugge Hub and the Dutch TTF.
- An assessment of traded peak and baseload power prices in the EU's three key electricity markets - the UK, Germany and France.
- Key analysis of cross-border price differentials and commodity spreads relating to current issues that are driving European energy debate.
- A comprehensive graphical breakdown of wholesale, retail and liquidity trends in Europe's most influential energy sectors.
Research and analysis highlights
UK spot gas prices have fallen back from the lifetime highs witnessed in late 2005, while Russian export disputes drive bullish sentiment in the forward market. Soaring wholesale traded gas contracts are exceeding industrial and commercial retail prices, intensifying the pressure on utilities to raise tariffs.
Zeebrugge wholesale gas prices directly tracked movements in the UK, softening in the prompt, whilst rising to fresh highs in the forward market. Despite a notable increase in the Dutch-Belgian spot price differential, however, the Zeebrugge hub attracted insufficient interest to maximise exports to the UK.
Historically cheaper than the neighbouring German market, spot and forward wholesale power prices in France are becoming consistently more expensive. French retail power suppliers are subsequently under greater wholesale price pressure than their German counterparts.
Key reasons to read this report
- Establish the current level of wholesale and retail energy prices and the fundamental drivers behind movements in the traded value of gas and power
- Understand how wholesale pricing impacts different facets of the value chain, identifying the potential to limit risk through hedging strategies.
- Forecast future developments in the traded price of gas and power in order to successfully take advantage of arbitrage opportunities.
The growing role of wholesale traded energy markets across Europe creates a greater need for players throughout the value chain to be aware of the latest market movements and developments. 