The Ukrainian Government’s “anti-terror” moves against pro-Russian activists in eastern Ukraine today have sparked a rise in European power prices, according to a daily market report.
Gemma Bruce, Client Portfolio Manager at npower’s Optimisation Desk said: “We’ve seen power and gas prices pushed higher this morning across the curve as an escalation of tensions in Ukraine lends support.”
Two helicopters have reportedly been shot down during the confrontation, she said: “This has seen concerns raised over potential gas supply disruptions to Europe once again.”
Gas exports from the UK to the continent were lower this morning via the IUK pipeline because prices in the UK are higher than European ones at the moment.
Ms Bruce said: “The spread between the two hubs widened, meaning there’s less incentive for the UK to send gas to Belgium.”
As for the UK’s power system, it was looking “very comfortable” again this morning.
It’s worth keeping an eye on unemployment figures due out of Europe this morning and US non-farm employment data set to come out at 2pm (GMT), she added: “Any movements there could see swings in currency which could give some direction to the [power prices] curve.”