EU Energy Policy

UK power prices to drop in line with gas – Moody’s

UK wholesale power prices are expected to drop in line with lower gas prices, higher imports and reduced electricity demand, Moody's says UK wholesale power prices are expected to drop in line with lower gas prices, higher imports and reduced electricity demand, Moody's says.
By Andreas Walstad 29 November 2017 0 28596
Chart showing UK interconnector capacity

UK wholesale power prices are expected to drop in line with lower gas prices, higher imports and reduced electricity demand, according to a recent report by ratings agency Moody’s. Moody’s base-case scenario estimated that British wholesale electricity prices will decline steadily through to 2022, falling from around £45/MWh now to £40/MWh.

This reflected Moody’s expectation that gas prices will fall modestly and that growing interconnector capacity will support higher levels of electricity imports. Carbon prices, including...