The UK saw prices open lower across both the power and gas contracts today.
That was due to the “over-supplied gas system, an increase in LNG [Liquefied Natural Gas] flows and little change to Dutch flows via the BBL [pipeline]”, according to the daily market report from npower.
With the over-supplied gas system, the line pack is currently forecast to close around 27 million cubic meters (mcm) long while flows via the BBL remain “unchanged” at above 20mcm.
Sarah Astley, Client Portfolio Manager at npower’s Optimisation Desk said at least five cargoes are due to arrive into the UK over next week.
“This has all put a lot of pressure on gas prices, with the day-ahead contract losing almost two pence a therm,” she added.
On power, Ms Astley said the peak margin has “reduced a little” since last week but remains healthy for this time of year, standing at above 11GW.
Nuclear generation has fallen to 7.3GW following an unexpected outage at Hartlepool 2 and is due to come back online this week.
Coal remains the dominant energy source, generating around 32% of the UK’s mix while wind output remains “relatively healthy” at around 4.5GW but is slightly below what was forecast.
Oil has seen “little change” at around $62 a barrel, she said.