Power prices have opened higher this morning, according to the daily market report, continuing the bullish run observed yesterday.

Alex Guiot, Client Portfolio Manager on npower’s Optimisation desk said: “Power prices are firming on the latest Russian gas cut threat. March ’15 is currently trading at £42.10 per megawatt-hour (/MWh) that is one pound up from yesterday’s close and summer ’15 contract is currently trading at £44.00/MWh which is 0.70p up.”

The market continues to be nervous around the ongoing crisis with Ukraine with Naftogaz failing to make another pre-payment to Gazprom yesterday. There are concerns Russia may once again stop supplies on natural gas to Ukraine, the analyst said.

Power margins are very comfortable with the peak margin forecast to be 13GW. CCGTs (Combined Gas Cycle Turbine) are providing 33% of the stack as wind generation declined heavily to 1.1GW, he added.

The gas system is currently forecast to close 30 million cubic metres (mcm) in length. Langeled flows are back at 70 mcm after reducing to around 50 mcm yesterday.

Elsewhere, oil prices have “edged lower” after finding some initial support following positive Chinese manufacturing data, released earlier this morning.