Power price drop maybe short-lived

By Daniel Fineren - Analysis LONDON (Reuters) - Wholesale electricity prices have slumped over the last two days, after hitting record highs early this week on winter supply fears, but could bounce back if several power stations do not restart soon. Prolonged nuclear plant shutdowns and environmental controls on coal-fired units have aggravated concerns over the last few weeks about supplies this winter, driving November baseload to a record high of 150 pounds a megawatt Tuesday. While an oil-led decline in wholesale gas prices over the last few months should mean cheaper gas bills for consumers next year, cheaper electricity bills seem less likely because of power station problems. Power prices have tumbled for two days after British Energy... [read full story]