The UK gas prices have opened lower this morning, according to npower’s daily market report.
That’s due to an oversupplied system which is forecast to close above 35mcm long.
The excess in supply is because flows from the BBL (Balgzand Bacton Line) have increased. They are currently at 36mcm.
The UK Interconnector is also importing more than 20mcm to the UK, which is further adding to the oversupply.
Gemma Bruce from the Optimisation Desk said: “Demand has pushed up today and is a touch above seasonal normal levels mirroring the slight decline in temperatures we have seen today.
“Temperatures in the UK are set to remain below seasonal normal for the next week which will see demand supported. However with widespread above-average temperatures seen in most of the EU through the same period, any increase in demand should be easily met by pipeline flows from the continent.”
On the power system, the peak margin is expected to reach 9.5GW.
Wind is generating 5.5GW but is expected to tail off slightly tomorrow to a low of 3.4GW.
Ms Bruce added: “Reports in Heren this morning suggest that the UK Government may be poised to announce a revision of the carbon price support which inflates power market values. The current rate of £18/tonne of CO2 is currently in the first year of a five-year freeze but some analysts have suggested the heavy selling on the far curve is an indication that the market could be pricing in a potential cut.”
The pound is valued at €1.162.