Oct-21-2002 British electricity prices roared higher on Friday, extending a week-long rally on uncertainty about the future of cash-strapped TXU Europe.
In prompt trading, Monday baseload shot up £8 ($12) to £30.50 ($47.25) a MWh, with day ahead peaks at £40.00, as traders weighed the possibility that TXU Europe could slide into administration. November baseload gained over a pound to £23.80.
“There’s basically been double buying,” said one trader. “Anyone who’s bought from TXU has been buying extra cover in case TXU can’t deliver,” said one dealer.
Sellers to TXU are due cash on Monday for deals struck in September. Earlier, traders said TXU paid out on gas contracts on time on Friday. TXU said on Friday it was in talks with several potential buyers of its European assets.