Gas prices are rising despite an oversupplied system, according to Inenco’s Y Report.
This may be due to long-term concerns regarding the lack of planned LNG deliveries into the UK and issues at the Rough and Groningen facilities.
Oil has also pushed up from $46/bbl (£36/bbl) at the start of the week to around $50/bbl (£39/bbl) following proposed production cuts by OPEC.
An explosion in a Chinese mine added further to the increasing coal price.
Head of Energy Trading Stuart Lea said: “Again, the bad news continues when we look at electricity prices. Despite the coal price falling off a little bit this week, demand has started to increase and there are concerns about nuclear outages.
“Given the bullish picture in the gas and electricity markets at the moment, if you are on a flex deal then it would be prudent to be carrying high hedge levels. If prices do fall in the future you can always unlock. If you’re on a fixed price deal the majority of those renewed on the 1st October. If you have not yet placed your deal you should do so as soon as you can to avoid the possibility that out-of-contract rates may be applied.”