UK power prices are being kept in check by a low price for the euro according to the daily market report from npower’s Optimisation Desk.
Client Portfolio Manager Tom Matthews said: “The euro is weak against the pound, it’s about the only limiting factor today that’s putting some pressure on power and gas.”
He added: “We’ve seen a fair bit of support on the back of a tighter gas system and power system, a slight pick up in carbon as well which is adding additional support. However gains are being capped by the euro remaining low.”
Carbon prices saw a “touch of support” linked to “jitteriness” ahead of EU elections, he said.
Norwegian gas plants shutting for maintenance has pushed the gas system very short and analysts expect the gas held in the system to drop 6% today.
Wind has dropped back below 1GW and CCGT has picked up in response, said Mr Matthews.
The market analyst said it’s worth keeping an eye out for the string of economic data due from Europe and UK today which could affect gas and power prices.