It is a “golden opportunity” for customers with fixed price contracts to enter into the market, according to Inenco’s Y report.
That’s because there’s a new downturn in power and gas prices.
According to Energy Trader Dorian Lucas, the sooner the contracts are fixed, the better “as they could potentially mitigate some risks going forward”.
He added: “For customers with flexible contracts, this downturn in prices is potentially the start of a new downtrend. You need to make sure that your hedging positions reflect that, whether that means unlocking or continuing to hold on a lower hedge level, just making sure that if there is a significant downturn in prices, you’re best placed to benefit from that downturn in prices.”
On the gas system the biggest fundamental change is regarding Rough storage as Centrica announced changes to the operational capacity for winter 2016. There will be as many as 20 wells available from 1st November instead of 10.
That will increase supply security for winter, said Mr Lucas.