Falling emissions prices and gas prices, caused the market to wake up and smash Q1 06 through £60/MWh down to £55.50, this is below the average for the contract and will no doubt encourage some players out of the woodwork. The cause of this fall has been spark spread activity and some banks and British Energy driving the price down, they are all long and aware that there is nothing fundamentally to justify Q1 06 at £60/MWh. To put this into context January was trading at around £64/MWh this was £25-30/MWh premium to the day ahead itself also coming into some severe selling pressure. This price differential was difficult justify even with a very cold winter and plant and gas supplies freezing. The clever players got out of this last week when the market looked to be held up artificially. Does this mean it will continue to fall? One suspects that a dranatic market move like this, will cause some over selling and no doubt, the buyers will return. read more ...