The unpredictable market yesterday has resulted in a boost in power season prices, according to the daily market report.
Tim Carter, Client Portfolio Manager on npower’s Optimisation desk said: “French interconnectors are now importing at near capacity as French margins improve and as such power prices are gaining in line with gas.”
The March ‘15 contract is up 70 pence per megawatt-hour (/MWh) at £43.76 while the summer ‘15 contracts have opened trading at £44.60/MWh. That’s up 40 pence on last night’s close, he added.
He said the UK’s gas supply and demand are roughly balanced with Linepak forecast to close just three million cubic metres (mcm) short. Demand is still above seasonal normal in line with the previous few days although CCGT demand has dropped off to just 40 mcm today.
The analyst added the uncertainty over the Ukrainian peace talks will continue to provide volatility for prices, with Ukraine currently not satisfied with Russia’s stance on the front line in eastern Ukraine and the status of the rebel-held regions.