The UK gas system is oversupplied, according to Inenco’s Y Report.
This is due to a fall in consumption after high seasonal temperatures and reduced exports to the continent.
Negative power market margins are forecast due to subdued renewable generation and electricity exports to the continent have increased following French nuclear outages.
The price of oil remains range-bound at multi-month highs and is offering little price direction to either gas or power, said Energy Trader Rebecca Hermolle.
Day-ahead gas and power prices have continued to rise, with seasonal contracts at multi-month highs.
Ms Hermolle added: “Those of you with fixed price contracts, you could look at fixing now for the next 12 months as prices continue to rise. For those of you with flexible contracts, you could limit your exposure moving into the winter months when we’re likely to see volatile price action.”