energy & carbon management - august 2012
TRANSCRIPT
utility management electricity gas waterWe know energy.
Telephone 01293 651218 Email [email protected] Website www.energyandcarbonmanagement.comEnergy and Carbon Management Limited Longley House, International Drive, Crawley, West Sussex, RH10 6AQ © 2012 Energy and Carbon Management Limited
Energy Newsletter / August 2012Page 1 of 2Welcome to Energy & Carbon
Management’s Newsletter MARKET IN BRIEFThe UK Electricity and Gas Market remain volatile and mildly bullish. Electricity and Gas although having moved slightly upwards from last month are still showing a greater downward movement on the annual comparison than last month.
North Sea Gas maintenance has impacted on the bullish sentiment in the market despite healthy LNG outlook and Power margin.
Brent Oil is at a 3 month high, with Coal the only commodity being bearish losing $2.5 a barrel partly due to resolution in Columbia.
The bullish side in the prompt has been driven by demand and pipeline maintenance.
Economic data expected out at the end of August is anticipated to have a bullish impact on price.
All 3 commodities are still showing a level of volatility with Winter ’12 prices for Oil currently approaching its resistance level, Electricity being tested and Gas having pushed through its own resistance mark.
On the whole UK news of late has been dominated by rising Electricity and Gas costs. We may not see a cut in prices for sometime so to counteract this we all need to start working smarter and eliminating energy wastage to control rising costs. ANNUAL REVIEWThe annual comparison shows Electricity and Gas still recording significant price decreases of 16.78% and 14.26% respectively. Bucking this trend is Oil which has turned from where it was positioned last year showing an increase of 7.41%.
Analysts comment that it is only a matter of time before OPEC (Organization of the Petroleum Exporting Countries) spare capacity become effectively exhausted, requiring higher oil prices to restrain demand, keeping it in line with available supply. Escalating tensions between Iran and the West and the risk to crude oil is driving prices upwards.
PRICEs CoMPAREd To ThIs TIME LAsT yEAR
GASELECTRICITY
ANNUAL REVIEW
Electricity (£ MW) £58.700 £48.850
Gas (ppTh) 73.125p 62.70p
oil ($ Brl) $88.90 $95.49
30/08
/11
29/08
/12
OIL
-14.26% -16.78% 7.41%
PRICEs CoMPAREd To ThIs TIME LAsT MoNTh
GASELECTRICITY
MoNThLy REVIEW
Electricity (£ MW) £46.825 £48.850
Gas (ppTh) 60.50p 62.70p
oil ($ Brl) $89.78 $95.49
30/07
/12
29/08
/12
OIL
3.64%4.32% 6.36%
utility management electricity gas waterWe know energy.
Telephone 01293 651218 Email [email protected] Website www.energyandcarbonmanagement.comEnergy and Carbon Management Limited Longley House, International Drive, Crawley, West Sussex, RH10 6AQ © 2012 Energy and Carbon Management Limited
MoNThLy REVIEWElectricity, Gas and Oil have all shown an increase in the month-on-month comparison for the first time since March, with Oil showing the most sizeable increase.
The current cooler temperatures and rising demand are affecting the near price with bearish economic sentiment relating to the Eurozone crisis continuing to affect far curve prices beyond winter 2012.
Britain’s rising gas import bill is creating an additional burden for many businesses, particularly those with a lot of set energy costs (lights, ventilation, machinery etc), and the next couple of years could see significant rises in energy bills which could be extremely challenging for many companies in an already difficult market oThER MARKET NEWsScottish and Southern Energy (SSE) last week became the first supplier to announce it would be increasing its domestic energy prices by an average of 9% from October. History would suggest that other suppliers will follow suit, with the prospect of similar increases likely for commercial prices.
SSE stressed that these so called unavoidable price increases for both Electricity and Gas were due to wholesale prices and the rising cost of transporting energy through pipes and wires. Other contributing factors they highlighted were also due to them having pay for government schemes such as the Carbon Emissions Reduction Target (CERT), the Warm Homes Discount and helping vulnerable customers.
SSE says that the cost of Government sponsored Schemes has risen nearly a third since last year, now accounting for around 10% of a typical bill. EON attempted to capitalise on SSE’s price rise by assuring its customers it will not raise its energy bills this year.
Confusion reigned in Europe last week partly due to the unexpected agreement by the Eurozone leaders on a plan to centralise funding of the banking debt crisis in return for banking union.
Whilst in the US confidence remains low due to little evidence of economic growth, unemployment, retail sales, property prices and debt levels. Growth in China is also slowing down.
QUEsTIoNs?CoNTACT Us TodAy
Telephone01293 651218
Fax01293 512030
Websitewww.energyandcarbonmanagement.com
Energy Newsletter / August 2012Page 2 of 2