UK prompt power prices have been decreasing over the past two weeks, according to npower.

Energy analyst at the firm, Magali Hodgson explains that UK power prices have traded down in the last couple of weeks with some resistance to levels on the front curve. "DA has been trading in a range of £2 and is now at its lowest level so far this month," she said.

“In addition, gas prices in the prompt have lost more ground than its power counterpart. The gas system has been well supplied with the arrival of LNG cargoes last week and the UK should have some more due to arrive by the end of the month. Due to softening gas prices and coal trading sideways, gas stayed the fuel of choice for generation.

The market still dealing with the long-term effect of the Japanese disaster and the future of nuclear generation in Europe and is still finding some drive from strong Brent oil prices, she explained.

“In the last fortnight, oil traded in a range of US$5.50 and has been trading above US$120 all month, while 2012 AP12 Coal is stable trading sideways and still above US$130.

“The UK market was quiet last week as everyone was getting ready for the bank holiday weekend. As this week is a very short week, before the next long weekend, traders were reluctant to take on big positions.

May 11 is due to close this week but liquidity will be at an all time low, with the outlook for the next couple of weeks divided by a bearish prompt and a flat to bullish curve.

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