The power system in the UK looks “very comfortable”, with the margin standing at around 14GW.
The daily market report from npower suggests wind generation has risen, supplying around 6% of the UK demand currently and is expected to increase across the day. Nuclear generation has also been “robust”, providing additional support.
Looking at the gas system, it is expected to drop by around 3% today as withdrawals from the Rough facility has been halted, Tom Matthews, Client Portfolio Manager at npower said.
He added: “We’ve seen contracts open lower again today, main driver being a weak Euro and weaker carbon. On top of this we’ve got easing retail buying interest after the April default which is all just putting pressure on prices.”
Carbon is trading lower today, with “trade citing that lower German prices has been a result of this”, Mr Matthews said.
Euro is also down, with drivers being “poor German and French sales data”.
On the outlook “we’ve got key GDP data out the UK this morning which should give further direction to the Euro and Pound which could filter into prices later this afternoon”, he added.