|Gas prices decreased on Friday on the back of a mild weather forecast for the rest of December, with further bearish pressure coming from falling oil prices. The UK gas system was short due to a number of outages in Norway but this did little to curb the losses.
|Day-Ahead power was the exception on Friday as the rest of the power curve displayed losses. The prompt moved higher due to a slight drop in temperatures over the weekend and a weaker wind generation forecast. Further out, a decline in oil and coal contracts provided additional downward pressure.
|Norwegian imports into the UK are back to normal this morning but the system remains short following an increase in gas-fired power generation to make up for a drop in wind output. However, the outlook remains bearish as temperatures are expected to increase to well above the seasonal norm this week.
|Wind generation is expected to rise from 2GW to 4.5GW tomorrow which has helped the prompt record a sizeable loss as the UK's reliance on expensive gas-fired generation will be reduced. Elsewhere, most contracts have followed their weaker gas counterparts and oil prices continue to plummet.
Brent 1st-nearby prices are at their lowest ebb for eight years and are close to hitting the record lows seen in 2008 following a worrying IEA report, showing an unstable oil market.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity decreased - closing at 35.04ppt and £38.03/MWh, respectively.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
Click graph to enlarge