Carbon market putting ‘extra pressure on power contracts’

The carbon market opened “low” today at €6.25 (£5.2) a tonne, which is “providing additional pressure on power contracts”. The daily market report from npower suggests the UK energy market […]

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By Priyanka Shrestha

The carbon market opened “low” today at €6.25 (£5.2) a tonne, which is “providing additional pressure on power contracts”.

The daily market report from npower suggests the UK energy market “opened mostly in change” this morning with a “soft front”, contrasted by the ongoing Ukraine and Russia tensions and subsequent supply risks.

Client Portfolio Manager Steven Walker (pictured) said the line pack is currently estimated to end the day eight million cubic meters long – against a demand of 218 million cubic meters.

 

He added: “Slight Rough storage injections reduced Norwegian imports and slight exports through the interconnector helping offset seasonally low demand.”

Temperature forecast is trending towards seasonal normal from next weekend, which could lead to a “modest pick-up in gas demand at the front”.

Wind energy output of up to 6GW is expected tomorrow while imports through the French interconnector have halved to 1GW, Mr Walker said.

Brent oil however remains at around $108 (£65) a barrel, he added.