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Energy Volatility

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Another day of significant volatility in the UK power & gas markets. A relief if you're hedged, great news if you're long, but disaster on the short side...

Firstly, the N2EX Day-Ahead auction cleared at an avg. price of £198.78 with period 17:00 - 18:00 (GMT) attracting a price of £1,499.62 /MWh (interestingly over on the EPEX auction the same period cleared at "only" £1,000 /MWh)

By late morning the front month price had rallied to at least £82 /MWh with the near-curve trending upwards.

Products further out on the curve seem less impacted by the surge in near-term pricing, with Sum/Win-22 gaining a modest c.8% since October compared to the c.23% seen on Sum/Win-21

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