A bullish start to the week saw gains recorded across the prompt and curve during Monday & Tuesday’s sessions, as a combination of higher demand and an unexpected decrease in Norwegian imports left the system short. The front month closed Tuesday’s session at 59.43p/therm, 3.31p above the previous week’s close, with Q1-15 closing up 2.87p at 59.85p/therm. Some of these gains have been shed over the subsequent sessions, as demand has fallen and temperature forecasts for December have been revised upwards. The aforementioned contracts are currently offered 58.05 & 58.15p/therm respectively, down 1.38 & 1.70p from Tuesday’s close. The Summer & Winter 2015 contracts are currently offered at 53.10 & 59.95p/therm.
Power contracts found support from the rising NBP early in the week with big gains being recorded on the near and far curves. The December 2014 contract closed Tuesday’s session at £49.71/MWh, £1.96 above the previous weeks close, but has since shed some of these gains and is currently offered at £48.91/MWh, as contracts continue to track their gas equivalents. Q1-15 is currently offered at £49.10/MWh after climbing above £50.00/MWh earlier in the week and the Summer & Winter 2015 contracts are currently offered at £48.65 & £53.15/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.