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UTILITY WEEK | 14Th - 20Th NovEmbEr 2014 | 29 Markets & Trading This week Gas prices rally but fall year on year Average prices 4% higher than last month, but 25% lower than in october last year UK gas market prices rose in October to an average 4 per cent higher than the previous month, but market experts at Platts said its value was still three-quarters of what it was at the same time last year. According to the price report- ing agency, the average price for near-term gas delivery in October averaged 50.41 pence per therm, stronger than the September average of 48.45 p/th because of higher temperature-led demand for gas heating. However, prices are still 23 per cent lower than the same time last year when prompt-delivered gas averaged 54.10p/th in October 2013, said Platts. "In 2013, traders were still filling natural gas stor- age at this time of the year. But this year, they finished restocking much earlier, and the weather was mild this October, which limited the expected winter increase in heating demand," said Platts energy analyst Alex Froley. "The price of natural gas for first quarter 2015 is now around 55.50p/th, and for summer, 51.25p/th. A year ago a trader would have had to pay 72p/th to lock in first quarter gas for 2014, and 64p/th for the summer," he added. UK electricity prices on the wholesale market were also lower in October this year than in the same month last year, but at a less dramatic 7.5 per cent discount, Platts price data shows. Power prices have crept higher from September's £41.72/MWh to £44.12/MWh but are still lower than the £47.80/MWh average seen last year. JA ELEcTrIcITY APX traded volumes hit all-time high Traded volumes on the APX energy exchange hit an all-time high as the winter trading sea- son began last month. For October, APX posted a record high for its UK power market volumes at 2.76TWh, aer significant growth in volumes across the daily auction it operates jointly with rival exchange N2EX as well as its 'continuous trading' market. For its daily auction, there was a year-on-year volume increase of 80 per cent to 1.31TWh and volumes on the exchange's more mature con- tinuous market reached a total of 1.45TWh, up by 26 per cent year on year. Unlike continental markets, which have a single exchange for daily power auctions, UK traders can choose between trading on the APX or N2EX exchanges. Although N2EX has typically dominated auction volumes and APX has held the lion's share of continuous market trade, the latter has seen auction volumes steadily increase since the two exchanges aligned. Also, APX has increased its UK power membership with the addition of Italian power com- pany Enel and Nordic energy company Neas. They bring the number of APX members in the UK market to 68. ENErgY Chinese boost for global carbon trade The drive towards a global cap-and-trade system for carbon emissions is moving forward thanks to the "determination" of the Chinese to establish a national carbon trading scheme by 2016. The Foreign Office special representative for climate change, David King, said in a select committee meeting that it was "feasible" China would roll out its own carbon trading scheme within two years, clear- ing the path for a global scheme. Originally China indicated that it hoped to implement its national trading scheme by 2020, but it has now revised its ambition forward to 2016. The EU Emissions Trading System has been dogged by over- supply, leading to suppressed prices and a lack of long-term price signals for low-carbon investment. King said that the greatest advantage of a global cap-and- trade scheme is that "it ties governments into a process which is written into law and is long range". Although King said it is "fea- sible" that China may achieve its 2016 carbon trading target, a global scheme will not follow immediately. "I think we want to see some maturity before we see some linkage," he said. Gas volumes low because of warm weather Headline sponsor Supported by Charity Partner Dame Yve Buckland Chair Consumer Council for Water Gary Dixon Domestic Retail Director United Utilities Helen Phillips Director – Customer Services and Networks Yorkshire Water Richard Khaldi Senior Director – Casework and Policy Ofwat Expert speakers include The 3rd annual Utility Week Water Customer Conference will feature experts from across the sector sharing fresh ideas on consumer strategy. Attend to: • Learn how to stay ahead of the curve with innovative customer service • Prepare for the opening of the non-domestic market to retail competition Headline sponsor Supported by Charity Partner Dame Yve Buckland Chair Consumer Council for Water Gary Dixon Domestic Retail Director United Utilities Helen Phillips Director – Customer Services and Networks Yorkshire Water Richard Khaldi Senior Director – Casework and Policy Ofwat Heidi Mottram OBE Chief Executive Offi cer Northumbrian Water Vincent Muldoon Customer Relations Director Affi nity Water Expert speakers include The 3rd annual Utility Week Water Customer Conference will feature experts from across the sector sharing fresh ideas on consumer strategy. Attend to: • Learn how to stay ahead of the curve with innovative customer service • Prepare for the opening of the non-domestic market to retail competition • Brush up on SIM – how should we be preparing for the 2015 changes? • Hear experts talk on increasing consumer engagement • Find out how Smart meters and data can revolutionise customer experience Follow us @utilityweek using #watercustomer BOOK NOW AT www.uw-watercustomer.net WaterCustConf15-HPHad.indd 1 16/09/2014 14:18