Power and Gas prices fell marginally on small volume, and milder weather predicted for the end of this week. However, the falls were guarded with a general feeling that the system will be able to cope if things are mild and outages do not occur. Moreover, those short gas have been dipping into storage and are aware that this will have to be used in future months, if Winter takes hold, therefore there will be significant buying pressure from those producers that need to push gas into storage as well as those on short term day ahead contracts.

Ofgem's recent warning shot aross the bows, will be closely looked at, but with unprecedented highs anyone who is naturally long is looking to sell into this sort of strength and this is perhaps why the market has not fallen as violently as some have predicted. Most concede that the market will fall but not as much as people hope, there are still alot of shorts out there.