It is a good opportunity now for customers who are looking to place a fixed price contract, according to Inenco’s Y report.
That’s because they can take advantage of cheap gas and power prices which can provide them year-on-year savings, according to Energy Trader Rebecca Hermolle.
Customers with flexible contracts with relatively low hedges should also take this “uncertainty in supply demand fundamentals” and low prices as an opportunity to increase their hedges.
Temperatures are below seasonal normal levels and some outages across the UK and Norwegian continental shelf have restricted gas supply.
Furthermore five nuclear reactors are offline for annual maintenance.
Ms Hermolle added: “Contracts rallied late last week due to these uncertainties in supply demand fundamentals and on the way up they broke through a number of key technical levels. Going forward we expect prices to stay at these high levels as they broke through that key technical levels.”