Most of today’s power is coming from Combined Cycle Gas Turbines (CCGT) in the UK according to the daily market report from npower.
Tim Carter, Client Portfolio Manager on the Optimisation desk said: “Today there are no imports through IUK from France as their peak power margins are just 5GW this morning. CCGT is currently generating the bulk of the UK’s power at just over 20GW, which is leading to increased gas demand of over 40 million cubic metres (mcm).”
Linepak is currently forecast 13 mcm short as demand is still above 40 mcm seasonal normal levels at around 330 mcm, said the analyst.
However this is significantly down on the peaks of last week where demand reached highs of 365 mcm on Wednesday, he added.
Mr Carter said: “The March ‘15 gas contract is now trading at 45.5 pence per therm, that’s over a penny down. While the equivalent power contract is at £39.50 pence per megawatt-hour (/MWh) which is down 75/MWh.”
Summer 15 contracts were also down with the gas at just over 44 pence per therm and power is yet to trade but is offered at £42.50/MWh which is down 25 pence from Friday, he said.