Power and gas markets have opened softer this morning due to a well-supplied gas system and a retreat in oil.
A weakening pound may provide some upside risk, according to npower’s daily market report.
Gas demand and temperature are fairly average for the UK for this time of year. Local Distribution Zone demand may ease off if the temperature rises.
The UK linepack is well supplied at just over 35mcm long.
The Norwegian supply chain has returned to normal, Langeled is flowing close to its full capacity at 69mcm.
Peak power margins for today are just above 11GW. Gas-fired power generation is just above 19GW, making up 57% of the stack. Wind generation is reasonably low at 800MW. Nuclear production is lower after a reduction from Dungeness B and Hunterston B, totalling 349MW. The nuclear total is now at 6.8GW, just under 20% of the stack.
Oil is currently trading at $48.47/bbl (£34.23/bbl).
Sam Hill from the Optimisation Desk said: “The pound is trading against the Euro at €1.256 with the looming EU referendum providing additional volatility.”
“Some bank rates and monetary policy summary information due out at mid-day today will provide further direction.”