Outage Planning

21 June 2005

Out and Out decisions not always clear cut.

Outage planning on plant is notoriously difficult to predict, and even having predicted what plant is out when, it is almost impossible to assess what the effect on market price is. In theory outages should be done on a cost basis, when the plant is at its least profitable should be the time when the plant is taken out for scheduled maintenance. In reality this is difficult to do particularly when the engineers come from the same operators, who themselves are under pressure from a range of producers to provide their engineers all at the same time. Last year, the network had a series of NISM's (Notices of Insufficient margin) during August, because many plant took planned outages at the same time. Due to the nature of moving staff and the logistics of scheduling an outage, producers tend not to reschedule an outage to reflect price movements. At the moment quite a large proportion of plant is off line, and the problems of August 2004 look to be repeating themselves in June 2005. This is made worse by fuel prices and margins being as high as they are in that a badly scheduled outage is going to cost more. In reality the market has to bear the pain of a lack of supply at some time; whether this is August or June doesn't matter, it just means that the prompt can only get better when some of the plant returns to full generation having had its annual spruce up.


Supply  Generation 

Related Articles
100 % Met Weather Prediction  

28 September 2005


Weather is difficult to predict long term but in the short term it is the key fundamental driver on price, and this is why prompt prices for next week have risen.  read more...

100 % Q1 06 hit by the fall in prompt.  

23 September 2005


Market looks to be returning to an element of normalcy with serious calendar spread trading developing.  read more...

100 % Scottish Power results impress as market responds slowly to oil  

10 August 2005


Scottish Power look good but is their trouble round the corner  read more...

100 % Conflicting fundamentals cause stability  

20 July 2005


Warmer weather, gas prices up and another generation project planned. Its not going anywhere!  read more...

100 % Is your custom that important?  

24 June 2005


The more customers a supplier has in a rising market the more exposure to power price they have, this may not always be welcome when the buying forward is so expensive.  read more...


other articles on Supply
October -What to Expect  

03 October 2011


October is a month to identify some good value purchasing opportunities. History suggests we will see prices slip through the month before the real winter drivers kick in.  read more...

Shale Gas - Latest UK estimates suggest enough for next 11 years  

22 September 2011


Cuadrilla Resources, the company at the forefront of Britain's Shale gas exploration released its first estimates of the amount of shale gas contained in the rocks of Lancashire. At 200 trillion cubic feet, the estimates are significant to say the least.  read more...

Gas Imports Keep the System Balanced  

08 January 2010


Two GBAs in one week, use of Interruptible Supply Contracts and record temperatures but the system remains balanced and gas prices even drop during trading.  read more...

Gas Balancing Alert Issued  

05 January 2010


National Grid issues a rarely used Gas Balancing Alert following both supply and demand pressures. With severe weather warnings in place and freezing temperatures set to continue, will this be the last of the GBAs?  read more...

EdF enters the world of competition..  

05 November 2009


EdF has capitalised on competitive energy markets across Europe, not least in the UK, while at the same time enjoying a dominant, competition free, environment at home in France. It looks as though the EC has finally caught up with them...  read more...


other articles on Generation
What's in the Mix?  

24 September 2010


While gains may have been seen in both the power and gas markets this week – the gains were not equal causing a big shift in the generation mix  read more...

Out with the Old, In with the New  

31 December 2009


During the last day of trading in 2009, the UK Power curve closes down but what will the New Year hold in store?  read more...

Unseasonal Temperatures help to melt prices  

16 November 2009


Middle of November but no sign of wintery temperatures. The effect was to soften the prompt power market, which also felt the pressure from weak commodity curves. The downward trend fed through the power curve.  read more...

Market forgets basic principles and panics!  

02 October 2009


It could be said that the market over reacted today in the prompt market with a price rally on the back of a £142 half hourly cash out price.  read more...

What's Happening in the Back-End?  

19 June 2009


The back end of the curve is extremely difficult to trade. Those dipping their toe in tend to be Producers (with excessive length adjusting their risk positions) and Banks looking for some exposure. At the same time Retailers tend to be short-termist.  read more...


Energy News by Date
2012 2011 2010 2009 2008 2007 2006 2005 2004
december november october september august july jun may april march february january
RSS Feed
Keep up to date on energy trading news.
Click here to subscribe
RSS
Day Ahead Electricity Prices

1y  6m  3m  1m
Powerisk Online
Powerisk Online tools and services.
Click here to login
Glossary
Glossary
Powerisk glossary of power terminology.
Click here for glossary
Glossary