The index is 'bubbling along' at around the 15 c/kWh level, increasing 3% this month over last month.

Electricity futures prices are a major driver of the other contract prices that make up the index, and the futures are shifting as global coal futures prices continue to change. We can expect this behaviour to continue on the basis that the Rankine (steam turbine) units at the Huntly power station continue to be primarily powered with coal imported from Indonesia.

In response to the lower-than-expected coal demand in Europe over winter, coal futures fell substantially during the last month. A dramatic decrease in the global price of natural gas also contributed to the price change. In saying this, coal futures prices still have a long way to go in order to return to the levels that were expected prior to 2021.