Global Markets

NBP day-ahead under pressure from weak demand

NBP prices have been hit by mild temperatures and weak gas-fired generation NBP prices have been hit by mild temperatures and weak gas-fired generation.
By Catriona Scott 25 January 2018 0 29258
Eschweiler wind farm Mild temperatures have hit heating demand, while strong wind has bolstered generation from wind turbines. (Innogy)

Directional impact on forecast:
Bearish for NBP day-ahead prices

The NBP day-ahead has fallen under pressure from unseasonably high temperatures and weak gas offtake from the power sector. The combination of factors forced the price down to 47.8 p/th on Wednesday – a decline at the peak of winter.

The NBP day-ahead averaged around 59 p/th in December. The price was pulled up slightly by supply disruptions, but even without the temporary spike it still averaged around 58 p/th over the month. Over the...