08.11.17 Power prices up over French concerns

Posted on November 8, 2017
Archive : November 2017
Category : Energy News

Growing concerns over the reliability of French nuclear plants (the same type ear-marked for Hinckley) pushed third quarter power prices up by 5% more than the previous quarter of 2017. EDF was forced to shut down three of its French reactors over safety concerns last winter which lead to a record high spike in prices for both the French and UK. UK traders who are worried that the same could happen again this year and they'll get caught short are hedging their bets by buying more electricity on the forward markets, which itself has pushed prices upwards. The shut downs came after serious manufacturing irregularities were found at one of the component producers.The French nuclear authorities are saying that the reactors won't be allowed to start again until their ongoing investigations were complete.

In addition, the permanent closure of the UK's only long-range gas storage facility (Rough in West Yorkshire) in July, due to safety concerns, has also lead to price pressures on gas. It accounts for about 70% of the UK's gas storage capability and when it was first closed in June 2016 many analysts were suggesting that perhaps the UK would not have enough gas to meet winter 2016 / 2017 demand. Fortunately we had a mild winter and it wasn't an issue.

Source: Utility Week – to read the complete Utility Week article please click here.