Prices still holding at higher levels amid onset of new heatwave

A softer start to the week, with the Winter 26 front-season contract pulling back slightly, though still holding at relatively higher levels when benchmarked against the last couple of weeks.

Temperatures are forecast to steadily increase across the rest of this week amid the onset of yet another European heatwave.

The latest run of the Crown Gas and Power 14-day model indicates that demand will trend close to seasonal norms, but the European mainland is expected to see more extreme temperatures, putting extra strain on regional pricing and potentially higher export demand.

British storage levels are finally showing some recovery after a ramp-up in injections over the past few days, though they still remain well below the same time last year, at around 12% of capacity.

A stronger start to the week for renewable power, though concerns about another heatwave served as a source of underlying support.

According to data from Elexon, wind power met 37.9% of British power demand on Monday, with combined renewable output (wind, solar, hydro, biomass) totalling more than 57%. Short-term attention is being directed toward forecasts of yet another European heatwave.

The primary concern is further disruption across France’s large nuclear fleet, which serves a crucial role in balancing the electricity systems of neighbouring countries, including the UK.

EDF had to shut down or decrease output at several reactors during the most recent ‘heat dome’ due to elevated water temperatures, prompting strength at the front-end.

If you want to see more information on the wholesale market trends subscribe to our weekly report here.

Price commentary courtesy of Crown Gas and Power