The Chancellor’s decision to freeze the carbon tax from 2016 has barely registered on future UK power prices.
According to analysts in a daily market report from npower the decision to cap the UK carbon price floor at £18 per tonne of carbon on the “little effect” on the further curve.
As for today’s prices, strong supply meant the market opened low.
Steven Walker, Client Portfolio Manager on the Optimisation Desk at npower said: “Markets opened low this morning led by continuing low demand and robust supply.”
Flows through the Langeled pipeline – an underwater pipe bringing Norwegian gas to the UK – are back to “maximum levels”.
Gas storage facilities were expected to boost storage injections as they did yesterday, he added.
Latest temperature forecasts edging higher through the second half of next week might add further pressure to prompt energy prices.