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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 / October 2012Page 1 of 2Welcome to Energy & Carbon
Management’s Newsletter MARKET IN BRIEFAs we have now reached October our pricing comparisons for energy are now focussing on price availability for contracts commencing anytime between now and April 2013.
Recently we have experienced bearishness in the UK Power, Gas and Coal prices, with the UK near price curve remaining relatively flat with slightly further out prices attracting a premium.
Despite escalating tensions between Syria, Turkey, Israel and Iran providing support to Oil prices we have seen Oil fall to a 3-month low. The government reported that US Crude Oil production climbed to the highest level in more than 15 years whilst fuel consumption has decreased. Economic slowdown in Asia has also curbed fuel demand.
Middle-east tension needs to be continually observed as this will drive future market volatility in Power Markets. Any positive announcements regarding an EU Bailout will provide some bullishness and confidence to the market. ANNUAL REVIEWThe annual comparison for an April ’13 renewal for both Electricity and Gas are both recording decreases mirroring the price direction of last months year-on-year comparison at 6.03% and 2.88% respectively.
Indifferent to last months newsletter which commented on Oil recording an increase in the year-on-year comparison this month Oil is showing a 4.17% drop partly due to currently healthy production and falling demand. MONTHLY REVIEWIn the month-on-month comparison Electricity and Gas are both recording increases of around 4% when looking at the April ’13 pricing curve. Coal generation slipped with the Drax Power Station going offline at the same time as the French Interconnector also doing the same, placing strain on the power network.
Limited short-term and erratic flows of gas from Norway have now retreated which has had a bearish impact on prices with Oil recording a sizeable month-on-month decrease of 4.65% in part due to the reasons detailed in the annual review.
PRICEs COMPAREd TO THIs TIME LAsT YEAR
GASELECTRICITY
ANNUAL REVIEW
Electricity (£ MW) £55.975 £52.60
Gas (ppTh) 68.65p 66.675p
Oil ($ Brl) $91.17 $87.37
24/10
/11
23/10
/12
OIL
-2.88% -6.03% -4.17%
PRICEs COMPAREd TO THIs TIME LAsT MONTH
GASELECTRICITY
MONTHLY REVIEW
Electricity (£ MW) £50.56 £52.60
Gas (ppTh) 64.35p 66.675p
Oil ($ Brl) $91.63 $87.37
24/09
/12
23/10
/12
OIL
3.61%4.03% -4.65%
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
QUEsTIONs?CONTACT Us TOdAY
Telephone01293 651218
Fax01293 512030
Websitewww.energyandcarbonmanagement.com
OTHER MARKET NEWs
UK Public favour wind turbines over shale gas wells, poll findsMore than two-thirds of people would rather have a wind turbine than shale gas well near their home, according to a new opinion poll jus published.
Asked to choose which of the two energy sources near to their homes 67% of respondents favoured a turbine, compared to just 11% who would support the gas development.
The survey also reported that only nuclear power and coal are less popular than shale gas developments, showing that public opinion is against George Osborne’s push for a new “dash for gas” as the central plank of the government’s energy policy.
The polls come a critical time for the government’s energy bill, which aims to deliver the £200bn required to replace and develop the nation’s ageing infrastructure, due to be published on the 5th November.
We must impose a carbon limit on new electricity generation here and nowInvesting in renewables, not gas, will allow the UK to emerge from recession and meet carbon targets a report published in the Guardian suggests.
Arctic Ice is melting faster than expected. Five years ago predictions suggested it would take until 2065 to shrink to size it reached last month.
Drastic action in the energy sector is required to reduce emissions to slow down the rate of global warming.
Earlier this year, the UK government’s independent climate advisor, the Climate Change Committee (CCC), called for carbon footprint of UK electricity to be 50g/kWh by 2030. However, the government set a standard for new electricity generators that is nine times higher. This is to allow electricity generation from natural gas but we will
not achieve the CCC target if these gas plants are built, because they typically last 30 years. The government believes this “dash for cash” will lead us out of recession.
Rather than listening to the fuel lobby, the government should turn its attention to Germany, now leading Europe out of recession. The peak price of electricity in Germany is falling steadily due to the amount of photovoltaic (PV) electricity is rising exponentially, giving their industry a competitive advantage.
In Summer or Winter PV systems in Germany supply cheap electricity with maximum power around noon, when the sun is highest in line with peak demand and the peak price of electricity.
In the UK, an all-renewable electricity supply would be even easier than Germany because of the monthly wind variation and evening electricity demand match.
Energy Newsletter / October 2012Page 2 of 2
