An oversupplied system has seen the prompt decline today, with the recent arrival of LNG shipments (with further deliveries scheduled for Monday) providing further downward pressure. Day Ahead has fallen 0.7p / therm from last night’s close to an offer price of 52.25p / therm. The near curve has also been affected by bearish sentiment, although losses have been curtailed somewhat by the forecast of colder weather lasting into the New Year. Further along the curve, weakening oil prices and a strong Pound against the Euro have provided downward pressure. Summer ’15 is offered at 49.50p / therm (down 0.36p / therm from last night’s close), with Winter ’15 offered at 55.70p / therm (down 0.55p / therm from last night’s close).
Prompt prices have remained relatively impervious to weakness in the equivalent gas contracts, with thin liquidity the likely cause. The near curve has followed gas into negative territory, with the far curve taking its lead from a weakening coal market on low demand. The Day Ahead is currently offered at £40.35 / MWh, unchanged from yesterday’s close. Summer ’15 is offered at £46.85 / MWh (down £0.12 / MWh from last night’s close), and Winter ’15 is offered at £50.65 / Mwh (down £0.20 / MWh from last night’s close).
The UK Government to launch emissions trading scheme in May and to introduce an environmental watchdog in July.
The UK Government has recently announced the date for the introduction of England’s post-Brexit environmental watchdog, which will be implemented on an interim basis in July.