U.K. Spot Power Prices Surged to Highest on Record in September
(Bloomberg) -- Average U.K. power prices this month were almost three times higher than any other September in records dating back to 2010.
With average wind levels down by a third compared to same month last year, U.K. power prices were fully exposed to the European energy crunch, marked by soaring natural gas and carbon prices. The nation’s day-ahead electricity prices surged to a record 424.61 pounds ($574.20) per megawatt-hour in an auction for Sept. 15, the same day an interconnector to France was knocked out by a fire.
The market hasn’t seen a daily spot price below 100 pounds since the middle of August, and for eight days this month it has been above 200 pounds. The average price for this month, 189.12 pounds, is higher than anything previously recorded on the N2EX exchange. Traders expect prices to surge even higher in October, with the contract for next month seen changing hands at as much as 220 pounds.
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