The UK gas and power contracts have seen “strong losses” today, according to the daily market report from npower.
Client Portfolio Manager Tom Matthews (pictured) said: “We’ve seen strong losses on power today, mainly driven by comfort on the front. Gas system is looking to run 20mcm long, mainly driven by big drops in demand.”
Strong flows from Norway and the Netherlands and demand being 20% below seasonal normal are driving comfort on the gas system today, he added.
“The power system is also very comfortable, with margins at 13GW. The main driver for this is we’ve got continued strong wind generation. Wind is turning around 7% at the moment but is looking to pick up to around 12.5% to the UK supply at its peak today”, Mr Matthews said.
He went on: “Looking at the near curve, pressure has come from continued mild outlook. On the weather front, everything looks generally above seasonal norm for the next two weeks. We do see a little dip but nothing really significant. Temperatures are still very warm looking forward.”