Analysts noted “softer” power prices in the UK’s energy market this morning as a burst of extra nuclear power was made available.
The nuclear capacity came from one of the reactors at power plant Dungeness B coming back online with 550 megawatts (MW) last week, with another unit pushed back to restart on Wednesday.
Tim Carter, Client Portfolio Manager at npower’s Optimisation Desk said: “As a result power prices look set to open a bit softer with November 14 currently offered 30p below the close.”
Prices for power on Friday last traded at £47 but this morning they opened at £46.55, at the time of the market update they were being offered at £46.70.
Gas prices are also likely to be squeezed downwards as milder weather is expected.
Mr Carter said: “Temperature forecasts have been revised even warmer for this week which should pressure the prompt markets. But early November looks to be slightly cooler which might balance the month ahead prices.”
He added: “However November 14 contracts are now trading at 53pence per therm which is down 0.3pence, while Summer 15 is just over 52p per therm.”
He said this price for next summer was “a similar drop” versus the price at close of trading on Friday.