Euro “big driver for UK gas and power markets”

The weakness of the EU’s currency is a big factor affecting energy markets, suggest market experts. Rob Brown, Account Director at energy consultancy Inenco noted “increased volatility” in short term gas […]

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By Vicky Ellis
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The weakness of the EU’s currency is a big factor affecting energy markets, suggest market experts.

Rob Brown, Account Director at energy consultancy Inenco noted “increased volatility” in short term gas and power markets.

Speaking in the Y Report he said there is, in contract, actually a “flat to bearish” trend to prices in the long term, because of healthy generation margins, “comfortable” storage levels and slightly warmer temperatures.

But he added: “It’s the euro weakness that’s going to affect these markets. With the quantitative easing announced by the European Central Bank last week, this will actually further weaken the euro before any recovery takes hold.”

Businesses looking to resign fixed energy contracts should be prepared to “move fast when this market turns”, said Mr Brown.