Power margins tighter – DMR

The UK power margin remains tighter at 8.6GW, according to npower’s daily market report. Wind is generating 700MW and is forecast to stay at this level in the next few […]

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By Jacqueline Echevarria

The UK power margin remains tighter at 8.6GW, according to npower’s daily market report.

Wind is generating 700MW and is forecast to stay at this level in the next few days.

Gemma Bruce from the Optimisation Desk said: “We will be more reliant on gas-fired generation which is currently making up 45% of the stack.”

The gas system has opened undersupplied and the linepack is forecast to close 3mcm short.

Demand has pushed above seasonal normal levels as temperatures are lower this week and expected to remain below average.

 

Ms Bruce added: “As a result of the increased demand we have seen some storage action this morning with Rough flowing steady at 33mcm and Aldbrough also withdrawing nearly 8mcm at present.”

Flows from Norway through the Langeled pipeline are at 71mcm and South Hook flows are 51mcm as an LNG tanker arrived yesterday.

Ms Bruce went on: “The front month Brent prices have declined this morning as expanding US inventories are keeping supplies at the highest level in more than eight decades.”

Oil is trading at $33.65/bbl (£22.8/bbl).