Summer 06 rose yesterday to £43.30 on the offer. This is not the highest it has been but when Winter 07 comes off, and the prompt falls as supply worries ease, carbon and gas all come off you have to ask what is keeping this product high. The simple answer is that as more and more traders want a position in a liquid product they are switching out of Winter 05 to Summer 06. In general traders are wanting to get long of the Summer and this is why prices are pushing up. Some will be trying to front run existing positions but most will be looking to speculate on a season which has traditionally risen to its peak price during the backend of September. If it follows previous years trading patterns then expect £44/MWh to be the high and for it as a season to fall below £40/MWh. Perhaps the fear in comparison to previous years is how will companies react to changing carbon prices.