Monthly Price Brief - A Review of European Gas and Power Price Trends: February 2008

Publication Date	April 2008
Publisher	Datamonitor
Product Type	Report
Pages	28
ISBN Number	not applicable
Product Code	DAT11114

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Summary

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

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 power prices in the UK Belgian Dutch German and French wholesale power markets.

Insight and analysis into the impact of wholesale markets on the wholesale / retail price interface.

Report Highlights

UK and EU energy trends have followed an upward trajectory over 2007-08

Bearish European power prices as milder weather slashes demand

European gas markets are under pressure and continue to firm.

Reasons to Purchase

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

Content

Datamonitor View
Catalyst
Summary
Analysis
- Energy Trends Have Followed An Upward Trajectory over 2007-08
- Energy Trends Have Followed An Upward Trajectory over 2007-08
Eu Gas Markets Are Bullish, LED by Holland's Ttf
Eu Gas Markets Are Bullish, LED by Holland's Ttf
- Wholesale Power Price Dynamics Vary Significantly across The Eu
- Wholesale Power Price Dynamics Vary Significantly across The Eu
- The Eu-Ets Is A Global Free Market Standard for Carbon
- The Eu-Ets Is A Global Free Market Standard for Carbon
- The Wider Economic Climate Is Also Key to Foreign Investment
- The Wider Economic Climate Is Also Key to Foreign Investment
- Crude Oil Prices Have Been Driving Inflation and Household Costs
- Crude Oil Prices Have Been Driving Inflation and Household Costs
- Bearish European Power Prices as Milder Weather Slashes Demand
- Belgian Baseload Contracts Dip at The near-End of The Curve
- French Baseload Weakens Significantly across The Board
- German Power Contracts Are Trading down Excluding Year-Ahead
- Dutch Year-Ahead Contracts Firm as near-End Contracts Fall
- UK Baseload Power Prices Register Losses on The near-End
- European Gas Markets Are under Pressure and Continue to Firm
- Traders at The Nbp Add to Spike Fears as Only Quarter-Ahead Falls
- Going out on The Dutch Gas Curve Prices Are Rising and Converging
- Zeebrugge Showed Bullish Form with Only Quarter-Ahead Softening
Appendix
- This Brief Builds upon Datamonitor's Extensive Pricing Proposition
- Glossary
- This Brief Contains A Number of Industry Standard Terms
- Our Analysis Builds on Other Sources to Provide Greater Insight
- Further Reading
- Extended Methodology
- We Assess The Profitability of Fossil Fuel Plants across Northwest Europe
- Our Bespoke Services Can Be Tailored to Your Specific Needs
- Ask The Analyst
- Datamonitor Consulting
- Disclaimer
List of Figures
- Figure 1: Spurred by The Soaring Oil Price, Energy Costs Have Been Rising Compared to This Time Last Year
- Figure 2: The Year-on-Year Change in Brent Crude Oil Is Almost 43%, over $40/Bl
- Figure 3: Europe's Key Gas Hubs Are Trading-up from Last Year despite The Mild Temperature
- Figure 4: The Dutch Ttf Gas Hub Showed The Biggest Gains over The Previous 12 Months
- Figure 5: Wholesale Baseload Power Has Been Rising Consistently across The Eu
- Figure 6: France and Belgium Power Prices Have Risen Faster than The Rest of Nw Europe
- Figure 7: Trading for The 2008 Settlement Period Is Encouraging Compared with The US Market
- Figure 8: The Re-Allocation of Co2 Allowances Have Improved The European System Whilst US's Ccx Lags behind
- Figure 9: The Sterling to USD Exchange Value Has Remained Relatively Stable as The Euro Makes Gains on Sterling
- Figure 10: The Year-on-Year Change between Euros and The Dollar Would Have Boosted Eu Investment
- Figure 11: The Retail Price Index (Rpi) Has Increased Dramatically and Fed through to Energy Costs
- Figure 12: in Real Terms The Median Household Dual Fuel Bill Has Fallen over The Course of 2007-08
- Figure 13: Bearish European Power Prices as Milder Weather Slashes Demand
- Figure 14: Belgian Quarter-Ahead Prices Dipped Significantly during January, Closely Followed by Month-Ahead on Lower Demand
- Figure 15: French Power Prices Dropped Significantly as Both The Milder Weather and Lighter Trading Affected Pricing
- Figure 16: German Baseload Prices Fell as The Bears Took Control - with The Exception of Year-Ahead Reflecting Longer Term Supply Positions
- Figure 17: Contracts at The near-End of The Curve Softened Considerably as Mild Q1 Temperatures and Ample Capacity Depressed Prices
- Figure 18: Month-Ahead Prices Softened as Temperatures Rose, However, Going Further out Traders Firmed up Summer 2008
- Figure 19: Typefigtitlehere
- Figure 20: Contracts at The Nbp Rose across The Board with Just The Quarter-Ahead Price Falling, Indicating A Potential Supply Squeeze
- Figure 21: Gas Contracts Firmed, but The Most Notable Development Was The Convergence of All Dutch Contracts
- Figure 22: Quarter-Ahead Contracts Dropped as Concerns at The Far End of The Curve Raised Prices
- Figure 23: Energy Pricing Proposition
- Figure 24: Generation Spread Methodology