Weather Check

27 October 2006

Weather forecasts suggest that the mild weather will last well into November, but when it does start to get cold look for those tell tale price increases.

The weather for this weekend and next week is likely to be pretty mild in fact in London it will average 16 degrees a couple of degrees above normal, and rivalling the warmest October on record (this happened last year!). But be warned, the electricity market does not react well to shocks, and although the clock change and a feeling that Winter is coming the suggestion is that when it does come, the change from mild October to normal chilly November will effect the market more than normal.

Plant which has been lying idly waiting for the first frost will be cranked up and often it does not work on its first outing. Consumers will be clammering to switch on radiators and start to heat the country! So a rapid pick up in demand and slow response from supply will see a slight increase in price.

In reality the market has expected this and in fact this is why prices for October have been as low as they have. January still looks high at £53 if you look at where the day ahead is now, but perhaps there is potential for a small upside move, when Mr Jack Frost returns from a hibernating summer.


Forward Curve  Weather 

Related Articles
100 % The problem with trading forward  

16 November 2006


Market a little lacklustre with players slack to tighten spreads and trading small amounts of spark spreads. Sellers appear to have gone to sleep and the relentless buyers are having to bridge the bid offer spread.  read more...

100 % Winter 06 slides.  

24 July 2006


Winter 06 reacting maturely to the prompt fears and beginning to move South as gas producers start to off-load some of their length.  read more...

100 % Markets stabilise  

19 July 2006


The markets look more stable and although the back end has started to respond a little to oil and emissions it could well be short lived, as the fundamentals suggest that quite significant amounts of the 18GW of plant which was unavailable in July will return in August.  read more...

100 % Bears still around  

04 November 2005


Bears push market down on the back of gas, the run has been quite long lived and some will question when the bulls will return.  read more...

100 % Day-Ahead proves to be pricey  

27 May 2005


Prompt no longer the driving force, as the curve diverges.  read more...


other articles on Forward Curve
Energy Forward Prices continue to gain ground  

10 June 2011


Despite market participants describing the market as stagnant and directionless, energy forward prices continue to gain ground. Winter 11 power closed the week up at £59.65/MWh while NBP Winter 11 gas finished at 72.20p/therm.  read more...

The Market in April 2011  

28 April 2011


In comparison to the activity seen in March – the energy markets seemed relatively sedate shedding some of the value along the way.  read more...

Carbon Floor Price Announcement: The Market Reacts  

25 March 2011


The tensions seen in the markets last week, as participants assessed the impact of Japan and nuclear withdrawal in Germany, appeared to have eased when the market started trading on Monday. The Government's mid week budget Carbon Floor Price announcement soon changes that though  read more...

Crude Oil Breaks Through $110bbl  

04 March 2011


Unfolding news in the Middle East continued to dominate the UK energy markets this week. When crude oil prices broke through $100bbl at the start of the month, the impact was noticeable on UK gas prices and Power prices in turn. Winter 11 power and gas closed the week at £55.75/MWh and 67p/therm respectively.  read more...

New White Paper highlights need for Energy Risk Management  

11 November 2010


Yesterday, npower launched its new white paper, commissioned from the London School of Economics on Energy Risk Management for UK business. The paper comes on the back of research that suggests that UK businesses now feel that energy presents a higher level of risk to their business than health and safety and security issues. But what should businesses be doing to manage the risks?  read more...


other articles on Weather
Monthly Review - Jan 2012  

01 February 2012


Weather, oil sanctions and European debt concerns were the pushers and pullers this month as energy markets responded to competing indicators. Volatility was the only constant.  read more...

Weather Forecasts and Iranian Threats  

27 January 2012


Forecast and outturn cold weather drove gas and coal prices this week which in turn had an impact on the power curve. Iran threatened to cut off crude supplies ahead of the EU's proposed July sanctions; a move that would impact EU nations as they seek to find alternative sources ahead of the import ban.  read more...

Warm weather weighs heavy on prices  

06 January 2012


Unseasonably warm weather and European debt crisis fears continued to influence the markets at the start of 2012. While oil did open the year up on the back of strong economic data from both the US and China, it retraced its steps on surprise US stockpile data combined with the Euro debt fears.  read more...

The Market in April 2011  

28 April 2011


In comparison to the activity seen in March – the energy markets seemed relatively sedate shedding some of the value along the way.  read more...

Confidence Returns to Market  

20 December 2010


Despite a continuation of cold conditions, confidence was seen returning to the market with a stabilisation of spot prices and comfortable system margins. There was some focus on the curve with seasonal contracts all reporting some gain on the previous weeks levels apart form Summer 13.  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