Sideways trading in the UK power market for much of this week, with very little movement and liquidity also drying up. Power prices started the week on the back foot but a rally in carbon somewhat prevented any further downward momentum. As the ENVI committee meeting on Thursday and Friday where EU ministers voted on the Climate Law increased speculation in EUAs. Wind generation was mixed all week, with some days reaching 10GW and other days only generating about 1GW of power. Subsequently CCGT on Thursday contributed as much as 67% of the stack. The UK interconnectors were also in export mode to France as French power prices were at a premium to much of the continent, as nuclear availability falls below 6GW/day and forecast to remain so for the rest of September. A pull back in carbon on Friday and increased renewables again weighed on prices into the weekend, with the October 20 contract trading around £42/MWh, down £0.75/MWh week on week. 

Heavy yearly maintenance work continues to restrict gas flows to the UK and NW Europe. Easington terminal and Nyhamna plant both underwent maintenance checks, which impacted flows via the Langeled pipeline. The first round of maintenance work on Troll gas field came to an end but the second round started shortly after. However with much of this work coming to an end at the back end of next week flows may start to increase. Prompt gas contracts have pulled back from 30p/th, with the DA contract sliding to 27p/th by Friday. Perhaps giving an early indication that trader’s confidence in supply is beginning to increase. Despite flow restrictions the system has been able to remain largely oversupplied as medium range storage site withdrawals increased to 40mcm.

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