Gas and power prices could fall even further going forward, according to Inenco’s weekly Y Report.

The recent rise in temperatures and a fall in demand have kept power prices low and “provided a good backdrop for prices to fall even further”, Risk Manager Matt Osborne said.

He added prices look “relatively comfortable” as solar and wind generation are expected to rise.

The UK has also seen improved Norwegian flows as gas plants have returned from maintenance. There has also been “strong” LNG flows – all of which looks “really comfortable in terms of supply and demand over the short term”, Mr Osborne added.

However, there is some uncertainty this winter, with key drivers being the situation in Ukraine and the gas production cap in Holland.

While those businesses on fixed price contracts have got plenty of time to buy, “they should be thinking strategically” about whether prices may rise over the next few months or so, the market analyst suggests.

He adds those on flexible contracts should also think about “whether to de-risk their strategy going forward”.