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U.K. Future Power Prices 15% 'Overvalued,' M&C Energy Says
2010-09-08 13:36:26.608 GMT
By Catherine Airlie
Sept. 8 (Bloomberg) -- U.K. power prices for the next two
years may be as much as 15 percent too high, according to energy
consultant M&C Energy Group.
"Forward prices for U.K. power 2011 and 2012 are about 15
percent overvalued, assuming the economic conditions prevail and
there is no extreme weather," Mark Dickinson, director of risk
management at M&C Energy Group. said today at an energy
conference in Birmingham, England.
U.K. baseload power for delivery next summer, the six
months through October 2011, rose 0.2 percent to 43.70 pounds
($67.53) a megawatt-hour as of 2:15 p.m. in London, according to
broker data compiled by Bloomberg. The contract has traded from
36.10 pounds and 48.30 pounds this year.
Dickinson based his assumptions on previous years' supply
and demand balance. "Large energy users need to risk manage
positions rather than take a view on future energy prices," he
said.
For Related News and Information:
U.K. power-market stories TNI UK PWRMARKET <GO>
U.K. power prices ELEU <GO> and gas prices UGAS <GO>
Energy markets menu NRG <GO>
--Editors: Rob Verdonck, Raj Rajendran
To contact the reporter on this story:
Catherine Airlie in London at +44-20-7073-3308 or
cairlie@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
