The prices of GOs have seen impressive increases over the last half year. Nevertheless, energy costs have also trended upwards. We look at the relationship between EAC value and its underlying commodity price.

• While GOs for Gas and Power have seen impressive gains, their underlying commodity prices have also increased in value.
• RES-E GOs have a lower relative value (GO vs power price) than Gas GOs (GO vs gas price).
• Power pricing trends and correlations suggest that the peak GO price for the year is yet to be observed.