Volatile energy costs to continue predicts npower

Magali Hodgson, npower optimisation desk manager said: "With oil prices reaching a 32-month high on 8 April, the energy market remains volatile. The news that Japanese authorities have raised the severity rating of their nuclear crisis to the maximum level will certainly add to this volatility." The comments came in response to latest data from npower's optimization desk- which assesses analyses energy prices for by businesses buying energy on flexible contracts. The UK market had reacted "bullishly" to the announcement of a minimum carbon pricing scheme in last month's budget, Hodgson added. Figures also showed a 40% rise in coal generation which could see bills increase, Hodgson noted. She said: "This increase in coal generation at a time when gas should be the chosen fuel will have an effect on European coal stocks, which could result in higher import requirements and prices." Overall, the energy market was in mixed mood, Hodgson stressed. All parties were keeping a watchful eye on unrest in the Middle East and Japan, she concluded. "The outlook for the next couple of weeks is flat to bullish, with the market still assessing the full impact of issues such as the turmoil in the Middle East, the Japanese disaster, nuclear generation and the Carbon Floor Price announcement."