Gas and power prices have opened slightly higher this morning. This is due to colder weather forecasts and a weaker pound, according to npower’s daily market report.
Oil prices are softer today, following an unexpected gain in US supplies yesterday.
The gas system is currently forecast to close over 11mcm oversupplied. Temperatures are currently above the seasonal normal but demand continues to be above average.
Power demand is lower today and will continue this trend on the run up to Christmas. This means power margins will be comfortable despite the usual planned maintenances over the festive season.
Gemma Bruce from the Optimisation Desk said: “Accelerating UK inflation and looming Brexit talks are taking their toll with consumers, who have lowered their expectations for the economic outlook in 2017. As a result we have seen the pound now worth just €1.18.”