Plunging temperatures across Europe pushed day-ahead gas prices to a six year high in early February, according to npower’s latest fortnightly market report.
Magali Hodgson, npower’s Optimisation Desk Manager said: “The arrival of cold weather in the UK significantly increased gas demand, pushing it above 400mcm. Temperatures across the continent also plummeted, particularly in Eastern Europe, causing European gas and power prices to surge.
“This gave strong support to UK prompt gas and power and the Day-Ahead gas contract rose to a six year high of 101.5p/therm.”
The imminent return of Dragon LNG’s Welsh gas terminal from maintenance could provide some price “relief” for gas contracts, she added.