UK gas and power prices ‘push lower’

Power and gas prices in the UK “pushed lower once again” this morning as a result of mild weather and “comfortable supply outlook”, according to the daily market report from […]

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By Priyanka Shrestha

Power and gas prices in the UK “pushed lower once again” this morning as a result of mild weather and “comfortable supply outlook”, according to the daily market report from npower.

The gas system “opened in length” – largely attributed to significantly lower consumption this morning compared to last week – with the line pack forecast to close around five million cubic meters long, Client Portfolio Manager Gemma Bruce said.

Norwegian flows into the UK has also increased slightly, importing around 46 million cubic meters although it is expected to reduce from tomorrow.

A number of Liquefied Natural Gas (LNG) tankers are also due to arrive in the UK in April.

 

“With the prices lower on the gas market as well, this has enabled storage sites to be in net injection mode with 40mcm nominated to be injected across the day. However we could see an increase in this today to bring the system to balance”, Ms Bruce said.

Looking at the power system, she added: “We’ve got a very comfortable peak margin this morning of over 17GW, with coal generation dominant and currently contributing around 14% of the generation capacity.”

Nuclear generation has also been “robust” however Dungeness B is planned to come offline today for maintenance “so we’ll see this easing”, Ms Bruce said.