A cold spell sweeping the country continues to push up short-term UK gas and power prices, according to the daily market report from npower.
As people reach for the thermostats, demand from households – signalled by the LDZ network of gas pipes – is higher said Gemma Bruce, Client Portfolio Manager at the supplier’s Optimisation Desk.
She said: “The UK gas system has opened balanced this morning despite LDZ consumption expected to be 20mcm higher than the levels we were seeing yesterday. Temperatures across the UK are expected to average around 3 degrees today which is below seasonal normal levels.”
This may not continue though as the weather warms up, she added: “This cold spell is likely to be short-lived with temperatures expected to start to adjust back towards seasonal normal from tomorrow.”
Extra withdrawals of gas from the Rough storage site have picked up today, according to the analyst, which is “helping to cover some of the shortfall from the increased demand”.
On the power system, margins have “tightened slightly”, with wind generation dipping lower today to around 2% of the UK generation stack.
The market expert added: “We have however seen nuclear generation continue to improve currently contributing over 13% to the stack.”
Brent oil has also resumed its decline, she said, dipping below $80 a barrel this morning.