Bullish supply and demand fundamentals (including reduced imports from the Netherlands and a fall in UKCS flows) have not prevented prompt prices from falling slightly today. The system is currently 30mcm / day in deficit, but demand is below seasonal norms as temperatures remain mild. Day Ahead is currently offered at 55.75p / therm, a fall of 0.05p / therm from last night’s close. The front month has also fallen 0.34p / therm from its previous settlement as two LNG shipments are due to dock in the UK tomorrow. Summer ’15 is offered at 52.25p / therm, a fall of 0.12p / therm from last night’s close.
A mixed picture has emerged today as bullish and bearish fundamentals compete for dominance. Outages at a number of gas-fired generation plants and at Torness 2 nuclear plant have been largely balanced by an upturn in wind generation and the scheduled return of the Dungeness B-21 nuclear reactor. The front month contract has lost 15p / MWh in trading, whereas Jan ’15 has gained 19p / MWh. Day Ahead is offered at £49.85 / MWh, and Summer ’15 is offered at £48 / MWh.
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.