Prompt prices well bid

20 June 2005

Curves up everywhere, all fuelled by fuel.

Powerisk has spoken regularly about the back end of the curve, and how it continues to rally upwards. If purchasers are adopting a head in the sand approach, then these market moves, will be hurting. Perhaps interestingly, prompt prices took a turn upwards on Fridays trading day, with day ahead at £34/MWh there is no doubt that this is fuel led, but at what point do these prices feed into the whole economy. For power producers these prices have been successful, because their margins have increased with fuel price increases. In reality though those intensive industries which use a lot of power have been slow to adjust their prices, and the inflationary jumps one might expect to see in government statistics are not forthcoming. The lobbying of power prices being too high, has been dampened by having a proper market. The lobbyists must look at the dynamics of the market and show that many players are not themselves helping by opting out of the market and going through intermediaries.


Generation  Bear Market  Industry 

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