Power and gas demand lower – DMR

Power and gas demand in the UK are lower today, according to npower’s daily market report. That’s because temperatures are warmer than the last few days. Gemma Bruce from the […]

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By Jacqueline Echevarria

Power and gas demand in the UK are lower today, according to npower’s daily market report.

That’s because temperatures are warmer than the last few days.

Gemma Bruce from the Optimisation Desk said: “Low pressure near Iceland will continue to direct warmer than normal air flows into Europe next week keeping temperatures above average for the time of year in the UK and across North West Europe.

“We can therefore expect prompt prices to continue to come under pressure next week as the absence of a prolonged cold spell makes the outlook more comfortable.”

The gas system is long and the linepack is forecast to close at 16mcm.

Langeled flows are at 70mcm and BBL is flowing at 24mcm.

Ms Bruce added: “This combined with Rough withdrawals of over 40mcm is ensuring the system is very comfortable today and we could expect changes in nominations across the day in order to bring the system to balance.”

On the power system, margins are “comfortable” at 14GW as wind generation has picked up at 5.2GW.

The French Interconnector is exporting more than 1GW but is expected to be reduced across the morning.

Oil is trading above $30 (£20.4) per barrel.

Ms Bruce went on: “Brent oil prices are however still lower than the start of the year as turbulence in global markets adds to the brimming US stockpiles and the prospect that Iran will start contributing more supply.”