The UK gas system is oversupplied, according to npower’s daily market report.
The linepack is forecast 10mcm long.
Demand is low due to temperatures are three degrees above seasonal normal levels.
Exports via the UK Interconnector are still higher than previous years.
Tim Carter from npower’s Optimisation Desk said: “Latest temperature revisions have also been increased towards the back end of the next 14-day forecasts meaning temperatures are set to climb and could well reach nearly six degrees above seasonal normal on 8th [November]. This all leads to particularly bearish sentiment on the front months with December power now trading at just £40/MWh.”
Wind is generating 3GW and is expected to reach 5GW today.
That means CCGT demand is suppressed and peak margins are very healthy at more than 13GW, according to Mr Carter.
He added: “There is however some new CCGT outages across the next three months, including Killingholme, which will average nearly 1GW of reduced capacity and may increase reliance on renewable feed-in.”
Oil is currently trading at $48.5 (£31.5) per barrel and coal at $48.1 (£31.2) per tonne.