A “bullish” trend of UK power prices edging up should continue today, according to the Daily Market Report from npower.
The analysts pegged the push upwards on a “tighter” power system, with a gap of less than 10 gigawatts (GW) between how much energy we need and what supply is available.
Gemma Bruce, Client Portfolio Manager at the supplier’s Optimisation Desk said prices for December 2014 baseload power looked set to open “firmer” again today. Baseload is the amount of power supply which is the minimum to satisfy the country’s needs.
Ms Bruce said: “As a result of the tight fundamentals we’ve seen the prompt and near-curve supported this morning. However seasonal contracts are trading sideways to last night’s close.”
Wind generation continued to be “subdued” at around 1GW this morning but more nuclear power plants back at work helped counter this.
Meanwhile the gas system opened “very short” this morning, as the analyst noted it looks set to be undersupplied by around 37 million cubic meters (mcm). This will lead to bigger calls on medium sized gas stores, she added.