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Gas Glut Erodes U.K. Power Premium Over European Neighbors

  • Deliveries of liquefied natural gas to Britain is jumping
  • Relief may be short term as longer-term contracts are rising

Britain’s power prices are now among the cheapest in Europe as floods of liquefied natural gas arrive on its shores.

So far in May, the average UK day-ahead price has been lower than in both France and Germany, upsetting a long established price pattern in the region. An unusually high level of LNG has created a glut that’s making it cheaper to run power stations burning the fuel.