Gas and power prices lower – DMR

UK gas and power prices have opened lower, according to npower’s daily market report. That’s because temperatures are back above seasonal normal levels. The gas system has opened long and […]

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By Jacqueline Echevarria

UK gas and power prices have opened lower, according to npower’s daily market report.

That’s because temperatures are back above seasonal normal levels.

The gas system has opened long and the linepack is forecast to close at 19mcm.

Demand is 39mcm lower than average for this time of the year.

Norwegian flows through the Langeled pipeline are at 50mcm.

Gemma Bruce from the Optimisation Desk said: “Rough withdrawals are also lower at 21mcm with exports to the continent at just over 16mcm. Given the system length however, we can expect further changes to flows across the day in order to bring the system to balance.”

 

On the power system, peak margins are forecast more than 10GW.

Wind is generating more than 5GW.

The French and Dutch interconnectors are importing at full capacity which adds comfort to the system, said Ms Bruce.

She added: “Elsewhere, oil prices have dropped this morning, putting an end to the biggest two day gain in more than seven years with the front month last traded at $30.88/bbl (£21/bbl). We have also seen EU carbon permits decline this morning to close to the lowest levels in more than a year as the above average temperatures ease demand for energy.”