In the day-ahead market on JEPX (Japan Electric Power Exchange), the 24-hour spot power prices for Sep 27-Oct 1 delivery firmed up from the previous week in both East Japan and West Japan. The rise came in a reaction to a demand lull in the Silver Week holiday week, together with relatively high temperatures in West Japan. In addition, an increasing number of thermal units entered maintenance shutdowns in the medium term, adding bullishness to spot prices. In West Japan, spot prices were glued to the Yen 20 level in evening for most of the week. In Hokkaido, spot prices shot up to Yen 55.01 in three windows in evening for Oct 1 delivery. Market players widely believed the spike in Hokkaido was related to the turn of the months and short-lived.

The actual highest price during the week was at Yen 55.01 in Hokkaido for Oct 1 delivery. The actual lowest price during the week was at Yen 0.01 in Kyushu for Sep 27, Sep 30 and Oct 1 delivery.

By area, the weekly average of the 24-hour spot prices was at Yen 9.76 in Hokkaido, up Yen 1.03 from the previous week, Yen 8.41 in Tohoku and Tokyo, up Yen 0.42, Yen 9.66 in Chubu, Hokuriku, Kansai, Chugoku and Shikoku, up Yen 0.73, and Yen 7.19 in Kyushu, up Yen 0.98.

Power demand in nine areas of Japan during Sep 27-Oct 1 was a combined 11,429.90 mil kWh, down 2.4% from 11,705.48 mil kWh during Sep 20-24. The figure was up XX% from the corresponding period a year earlier. Demand during Sep 28-Oct 2, 2020 after day of week adjustment was 10,836.73 mil kWh.

In the JEPX forward market, one transaction was reported on Oct 1. In Kansai, the 24-hour contract changed hands in 5MW on a weekly delivery basis for Oct 9-15. The price was at Yen 10.82.

Deals reported on TOCOM (Tokyo Commodity Exchange) during Sep 27-Oct 1 were as below.

Deals reported on EEX (European Energy Exchange) during Sep 27-Oct 1 were as below.

As the new month of October kicked off, spot prices are expected to remain solid as a rise in fuel prices will have a greater impact on power generation costs. Many power producers and suppliers were covered with bilateral OTC contracts until September as part of measures to cope with the peak-demand summer period. But starting in October, those buyers are likely to beef up spot purchases in the non-peak demand period. A possible pickup in spot buying will also contribute to firmer price movements. An increasing number of thermal units are scheduled to halt operation mainly for regular maintenance going forward. Any troubles at thermal units will have a high chance of causing a spike in spot prices.