Contracted position for 2008, 2009 and 2010
Since issuing the Trading Update on 18 December 2007, we have continued to trade in line with expectations and to follow our stated trading strategy of making steady forward power sales with corresponding purchases of CO2 emissions allowances and coal purchases. Our aim is to deliver market level or better dark green spreads across all traded market periods and, as part of this strategy, we retain power to be sold into the prompt (within season) power markets.
As at 22 February 2008, the contracted position for 2008, 2009 and 2010 was as follows:
| 2008 | 2009 | 2010 | |
|---|---|---|---|
| Power sales (TWh) comprising: | 20.5 | 15.4 | 10.4 |
| – Fixed price power sales (TWh) at an average achieved price (per MWh) |
16.0 at £47.9 |
10.1 at £43.0 |
5.1 at £45.3 |
| – Fixed margin power sales (TWh) | 4.5 | 5.3 | 5.3 |
| CO2 emissions allowances hedged, including UK NAP allocation, market purchases, structured contracts, and benefit of biomass co-firing (TWh equivalent) | 20.5 | 15.1 | 18.0 |
| Solid fuel at fixed price/hedged, including structured contracts (TWh equivalent) | 22.2 | 16.6 | 12.1 |
Fixed price power sales include approximately 0.8TWh supplied to
Centrica in the period 1 January 2008 to 22 February 2008 under the
five-and-a-quarter year baseload contract with Centrica which
commenced on 1 October 2007.
Fixed margin power sales include approximately 4.5TWh in 2008 and 5.3TWh in each of 2009 and 2010 in connection with the contract. Under this contract the Group will supply power on terms which include Centrica paying for coal, based on international coal prices, and delivering matching CO2 emissions allowances amounting to approximately 4.8 million tonnes per annum. The contract provides the Group with a series of fixed dark green spreads which were agreed in the first quarter of 2006.
We will provide the next update on our contracted position in our Interim Management Statement which is expected to be issued on 19 May 2008.
Fixed margin power sales include approximately 4.5TWh in 2008 and 5.3TWh in each of 2009 and 2010 in connection with the contract. Under this contract the Group will supply power on terms which include Centrica paying for coal, based on international coal prices, and delivering matching CO2 emissions allowances amounting to approximately 4.8 million tonnes per annum. The contract provides the Group with a series of fixed dark green spreads which were agreed in the first quarter of 2006.
We will provide the next update on our contracted position in our Interim Management Statement which is expected to be issued on 19 May 2008.