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Major UK interconnector hit by fire - 16-09-2021

A fire broke out during maintenance work at the IFA 1 (2GW) interconnector that links France to the UK. The result has been that half of its capacity will remain offline until March-22, while the other half is hoped to be back in a few weeks.

This sent near and medium term months surging in price yesterday in a market panic which is already suffering from an energy crunch as we approach winter. The fallout is the UK is going to have to increasingly use gas to power conversion at times this winter, with one of our most important interconnectors running at half capacity.

Today there has been a slight pull back, mainly in gas prices as the crazy valuations start to settle. Electricity is however showing much more resistance and even showing signs of pushing on further higher in price. Today is expected to be a very volatile day and there is more to play out still.