In true volatility terms, the power market moved significantly on Friday with a £1 increase in Winter 05 and £2 on the prompt. This move however, has to be tempered by the low liquidity and very little happening in gas and carbon. Not surprisingly if little is being bid or offered on a slow trading day, the likelihood is if one or two players "need to get something done" the resultant market movement can look deceptively large. If power companies go to the market and look to hedge significant volumes they will move the market. Players must be aware of the resultant bid offer spread and widening cost of business. There is little doubt that there is some selling interest coming back into the carbon and gas markets, the difficulty is working out how strong this selling pressure is and therefore how long it will last.