Power contracts in the UK expired trading last week at “record high” prices of £57.66/MWh, according to npower’s weekly market report.
Brent also recovered above $109/bbl (£72) last week due to increased demand from the US and Asia and carbon prices also saw a rise above €5/tonne (£4.2) due to confidence around the EU backloading programme.
Magali Hodgson, Product & Services Optimisation Manager at npower said there was also a high demand for gas in the UK last week due to the cold weather.
With UK forecasts finally predicting warmer weather, Magali suggests there could be positive signs for gas and power prices for the winter.
She said: “That means the balance of the summer contracts for both power and gas should see some relief. However, we still have strong support out there. With demand going down based on the weather, with the summer profile as well and with the clock change and some LNG (Liquefied Natural Gas) outlook looking a bit more healthy, we should see some injection going back into storage to replenish it. That should give some relief to the winter prices.”
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