Platts proposes to database UK emissions allowance prices and use them for UK derived calculations

S&P Global Platts is proposing to database UK emissions allowance prices and start using them in UK clean spark and dark spread, as well as coal switching price and baseload comparison calculations, effective May 19, 2021.

The UK formally left the EU Emissions Trading System (ETS) on Jan. 1, 2021, as part of the country's withdrawal from the EU, and is currently in the process of setting up its own domestic UK Allowance (UKA) market. The relevant futures contract is expected to start trading on the Intercontinental Exchange from May 19.

Platts clean spark and dark spread calculations measure the profitability of power plants in the UK running on gas and coal, coal switching prices measure the theoretical threshold at which gas is more competitive than coal in power generation, and baseload comparison calculations allow for comparison of the cost of providing baseload power through coal or gas-fired power.

Current calculations factor in prices of European Emissions Allowances, based on the data from the European Energy Exchange (EEX).

The full description of the methodology can be found on the p.6-7 of the European electricity specifications guide: https://www.spglobal.com/platts/plattscontent/_assets/_files/en/our-methodology/methodology-specifications/european_power_methodology.pdf

The affected calculations are published in the European Gas Daily, European Power Daily, on the fixed pages PEP0645, PEP0660, PGN0812, PEP0226 and PGN0813 of the Platts real-time services, and are databased in the EE Market Data Category under the following codes:

UK clean spark spreads, 45%, 50% and 60% efficiency:

Period
45% (GBP/MWh)
45% (Eur/MWh)
50% (GBP/MWh)
50% (Eur/MWh)
60% (GBP/MWh)
60% (Eur/MWh)
DA
UEIDA00
UKIDA00
CKFDA00
CEFDA00
CKSDA00
CESDA00
DA (CPS)
CKHDA00
CEHDA00
CKGDA00
CEGDA00
MA
UEIMA00
UKIMA00
CKFMA00
CEFMA00
CKSMA00
CESMA00
MA (CPS)
CKHMA00
CEHMA00
CKGMA00
CEGMA00
2 MA
UEIM200
UKIQ200
CKFM200
CEFM200
CKSM200
CESM200
2 MA (CPS)
CKHM200
CEHM200
CKGM200
CEGM200
1 QA
UEIQ100
UEIS100
CKFQ100
CEFQ100
CKSQ100
CESQ100
1 QA (CPS)
CKHQ100
CEHQ100
CKGQ100
CEGQ100
2 QA
UKIM200
UEIS200
CKFQ200
CEFQ200
CKSQ200
CESQ200
2 QA (CPS)
CKHQ200
CEHQ200
CKGQ200
CEGQ200
1 SA
UKIQ100
UKIS100
CKFS100
CEFS100
CKSS100
CESS100
1 SA (CPS)
CKHS100
CEHS100
CKGS100
CEGS100
2 SA
UEIQ200
UKIS200
CKFS200
CEFS200
CKSS200
CESS200
2 SA (CPS)
CKHS200
CEHS200
CKGS200
CEGS200
3 SA
UKIM300
UKIS300
CKFS300
CEFS300
CKSS300
CESS300
3 SA (CPS)
CKHS300
CEHS300
CKGS300
CEGS300
4 SA
UEIS400
UKIS400
CKFS400
CEFS400
CKSS400
CESS400
4 SA (CPS)
CKHS400
CEHS400
CKGS400
CEGS400

UK clean dark spreads, 35% efficiency:

Period
GBP/MWh
Eur/MWh
$/MWh
MA
CCUZM00
CCUTM00
CCUXM00
MA (CPS)
CCHZM00
CCHTM00
CCHXM00
MA+1
CCUZM27
CCUTM27
CCUXM27
MA+1 (CPS)
CCHZM27
CCHTM27
CCHXM27
QA
CCUZQ00
CCUTQ00
CCUXQ00
QA (CPS)
CCHZQ00
CCHTQ00
CCHXQ00
QA+1
CCUZQ27
CCUTQ27
CCUXQ27
QA+1 (CPS)
CCHZQ27
CCHTQ27
CCHXQ27
SN
CCUZS00
CCUTS00
CCUXS00
SN (CPS)
CCHZS00
CCHTS00
CCHXS00

UK coal switching prices, 45% and 50% efficiency:

Period
45% (p/th)
45% (Eur/MWh)
50% (p/th)
50% (Eur/MWh)
MA
EUCVM00
EUCTM00
EUKVM00
EUKTM00
QA
EUCVQ00
EUCTQ00
EUKVQ00
EUKTQ00
YA
EUCVY00
EUCTY00
EUKVY00
EUKTY00

UK baseload comparison:

Period and Fuel
CO2 (GBP)
Total/MWh (GBP)
Profit/Loss (GBP)
Profit/Loss (Eur)
Profit/Loss (USD)
MA gas NBP
AANFK00
AANFL00
AANFM00
AANFN00
AANFP00
QA gas NBP
AANFX00
AANFY00
AANFZ00
AANGA00
MA coal CIF ARA
AANGH00
AANGJ00
AANGK00
AANGL00
AANGM00
QA coal CIF ARA
AANGV00
AANGW00
AANGX00
AANGY00
MA fuel oil
AANHF00
AANHG00
AANHH00
QA fuel oil
AANHP00
AANHQ00

Note: CPS = Carbon Price support; DA = Day ahead; MA = month ahead; QA = quarter ahead; YA = year ahead; SA = season ahead; SN = season

Please send all feedback and questions to power@spglobal.com and pricegroup@spglobal.com by April 15, 2021.

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