Low interest in a new UK gas storage facility and a near 20 percent demand decline from seasonal norms kept prompt British gas prices down on Wednesday, traders said. “The new storage had no effect on wholesale energy prices, and it’s already been badly delayed,” he said. Gas for Wednesday fell to 24.25 pence per therm from an opening price of 24.75. Traders also said low demand was pulling prices down. “There’s plenty of gas around, people are now optimising for the winter.” The National Grid website said Wednesday’s demand forecast was 176 million cubic metres (mcm), down from a seasonal norm of 219 mcm.  For the winter, gas for delivery in the first quarter in 2010 fell to 51.75 from Tuesday’s closing price of 52.5.  The new gas storage facility in Aldbrough started operations with initial capacity of 60 mcm. In the UK power market, traders said prices rose late in the session on short supply and strong European demand.  “Warm weather is increasing demand, with all those air conditioners kicking in,” one trader said. Baseload electricity prices for late trading Thursday climbed to 42.5 pounds per megawatt hour compared to 39.5 pounds earlier in the session. Forecasts of lower electricity demand from the National Grid’s Winter 2009/10 outlook lowered curve power prices, said traders. Baseload electriciy delivered in winter was 44.3 pounds in late Wednesday trade, down from Tuesday’s closing price of 44.80.

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