The gas system has opened undersupplied today, according to npower’s daily market report.
The linepack is forecast to close nearly 8mcm short.
Gemma Bruce from the Optimisation Desk said: “Power markets are once again slow to get going with very few numbers posted across the curve but does look set to open a touch lower. This comes as oil prices drop back below $50/Bbl (£38/Bbl) with a weakening pound however capping any losses.”
The peak margin is forecast at 12.6GW due to an increase in wind output which is currently just below 3GW, falling short of the 4GW forecast.
Ms Bruce adds: “A survey carried out by the Centre for Economics and Business Research indicates that the proportion of businesses that are pessimistic about the UK’s economic outlook has climbed to 49% from 25% pre-Brexit.
“This combined with a number of economists expecting the UK to slide into recession has seen the pound devalue further this morning with £1 now worth just €1.1809. Further direction may come later this morning when Mark Carney talks at 11am.”