Near curve boosted on increasing weather risk

The UK wholesale electricity market mostly recorded session-on-session gains on Friday with a firmer fuels complex forcing the far-curve products up while upcoming cold weather has ensured that support remains for the near curve. Movement was mixed among the daily products.

Inspired Energy Director of Energy Intensive Clients, Nick Campbell gave his view to the European Daily Electricity Market Report, published by ICIS Energy:

“I think the elephant in the room for power is when EDF’s French nuclear reactors return as roughly a 1/3 is offline going into peak winter. If they do not return then [the UK power] market will become even more sensitive to weather forecasts,”

“However, if they do return then this could help ease UK power [prices] and ultimately gas as traders become less concerned about gas consumption for heating in the UK along with power generation here,” he added.