Wholesale power prices in the UK experienced a notable decline during the second quarter, attributed to both lower demand and falling gas prices, according to a recent report.
According to energy data analyst EnAppSys, which suggests UK demand reached its lowest level since 2020, with total demand at 51.6TWh, only 5% higher than in Q2 2020 when the Covid-19 pandemic heavily impacted European demand.
Analysts note that this decline was driven in part by industries and consumers altering their electricity usage habits in response to high prices observed in previous quarters.
Additionally, Q2 2023 witnessed a reduction in conventional generation and a significant drop in gas prices from April to early June, hitting a low of £19.47/MWh.
However, gas prices experienced a sharp increase in June, peaking at £35.34/MWh.
Carbon prices also fell throughout the quarter, with UK ETS prices reaching a peak of £74/te in early April and ending the quarter at £50/te, according to the report.
Experts also stressed that wholesale system prices reached their lowest level since the summer of 2021, decreasing by an average of 34% compared to the previous quarter.
The average system price of £87.58/MWh was the lowest recorded for any quarter since Q2 2021.
Notably, there were more instances of negative pricing than usual, with system prices plunging as low as -£155.20/MWh in May.
