Energy & Carbon Management newsletter - Sept 2012
2
utility management electricity gas water We know energy. Telephone 01293 651218 Email [email protected] Website www.energyandcarbonmanagement.com Energy and Carbon Management Limited Longley House, International Drive, Crawley, West Sussex, RH10 6AQ © 2012 Energy and Carbon Management Limited Energy Newsletter / September 2012 Page 1 of 2 Welcome to Energy & Carbon Management’s Newsletter MARKET IN BRIEF The bears have taken control of the UK Electricity and Gas Markets. Prompt losses occurred off the back of low demand, coupled with a healthy power margin and gas storage facilities operating at near to full capacity giving confidence to UK supply. Despite the current cooler temperature, ongoing North Sea Gas maintenance and low LNG berthing, the market price has been bearish with the Global downward pressure on Oil price continuing to be the key driver of the Electricity and Gas Markets. Oil price is down over growing concerns that the European debt crisis will worsen and derail the global economy. Greece is back in the headlines with an IMF report not likely to be out prior to the US elections. A Spanish 2013 budget presentation is due on the 27th September which should give further direction to the market. ANNUAL REVIEW The annual comparison shows Electricity and Gas still recording sizable year on year reductions although not as great as last month due to the market price taking a fall during August / September 2011. Electricity and Gas prices have fallen nearly 13% and 10% respectively in the last year, and although Oil is showing a significant monthly decrease it is still up in the annual comparison 5.61%. MONTHLY REVIEW In the month-on-month comparison all 3 commodities have reversed last months increases with all recording a downward movement at the end of September. The biggest movement was to the price of Oil at 5.75%, with Electricity and Gas both decreasing just over 3%. Oil price movement can be in part attributed to Saudi Arabia increasing its current production to a 30 year high. The short term view could be for further price decreases due in part to current gas flow to the UK being very healthy, the WSI (Weather Services International) forecasting warmer than seasonal temperatures for the final quarter of this year and the current pressure from OPEC members to push the cost of a Barrel of Oil down further. PRICES COMPARED TO THIS TIME LAST YEAR GAS ELECTRICITY ANNUAL REVIEW Electricity (£ MW) £55.175 £48.075 Gas (ppTh) 68.70p 61.95p Oil ($ Brl) $85.20 $89.98 26/09/11 27/09/12 OIL -9.83% -12.86% 5.61% PRICES COMPARED TO THIS TIME LAST MONTH GAS ELECTRICITY MONTHLY REVIEW Electricity (£ MW) £49.65 £48.075 Gas (ppTh) 63.925p 61.95p Oil ($ Brl) $95.47 $89.98 28/08/12 27/09/12 OIL -3.09% -3.17% -5.75%
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Transcript of Energy & Carbon Management newsletter - Sept 2012
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 / September 2012Page 1 of 2Welcome to Energy & Carbon
Management’s Newsletter MARKET IN BRIEFThe bears have taken control of the UK Electricity and Gas Markets. Prompt losses occurred off the back of low demand, coupled with a healthy power margin and gas storage facilities operating at near to full capacity giving confidence to UK supply.
Despite the current cooler temperature, ongoing North Sea Gas maintenance and low LNG berthing, the market price has been bearish with the Global downward pressure on Oil price continuing to be the key driver of the Electricity and Gas Markets.
Oil price is down over growing concerns that the European debt crisis will worsen and derail the global economy.
Greece is back in the headlines with an IMF report not likely to be out prior to the US elections. A Spanish 2013 budget presentation is due on the 27th September which should give further direction to the market. ANNUAL REVIEWThe annual comparison shows Electricity and Gas still recording sizable year on year reductions although not as great as last month due to the market price taking a fall during August / September 2011.
Electricity and Gas prices have fallen nearly 13% and 10% respectively in the last year, and although Oil is showing a significant monthly decrease it is still up in the annual comparison 5.61%. MONTHLY REVIEWIn the month-on-month comparison all 3 commodities have reversed last months increases with all recording a downward movement at the end of September. The biggest movement was to the price of Oil at 5.75%, with Electricity and Gas both decreasing just over 3%.
Oil price movement can be in part attributed to Saudi Arabia increasing its current production to a 30 year high.
The short term view could be for further price decreases due in part to current gas flow to the UK being very healthy, the WSI (Weather Services International) forecasting warmer than seasonal temperatures for the final quarter of this year and the current pressure from OPEC members to push the cost of a Barrel of Oil down further.
PRICEs COMPAREd TO THIs TIME LAsT YEAR
GASELECTRICITY
ANNUAL REVIEW
Electricity (£ MW) £55.175 £48.075
Gas (ppTh) 68.70p 61.95p
Oil ($ Brl) $85.20 $89.98
26/09
/11
27/09
/12
OIL
-9.83% -12.86% 5.61%
PRICEs COMPAREd TO THIs TIME LAsT MONTH
GASELECTRICITY
MONTHLY REVIEW
Electricity (£ MW) £49.65 £48.075
Gas (ppTh) 63.925p 61.95p
Oil ($ Brl) $95.47 $89.98
28/08
/12
27/09
/12
OIL
-3.09%-3.17% -5.75%
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
Energy Newsletter / September 2012Page 2 of 2
OTHER MARKET NEWs
EdF shrugs off extra nuclear cost accusation as “speculation”EDF has shrugged off accusations from rival supplier SSE that the cost of nuclear power could add extra cost to its customer’s bills.
EDF is planning to build several new nuclear reactors in the UK, depending on the strike price – or amount the government gives suppliers for generating low carbon energy, which will be set in the new Energy Bill due out this Autumn.
At present the strike price applicable to new nuclear is subject to discussions with the Government. EDF commented “when a figure is published, it will be open and transparent for all to see. We are confident that any agreement will demonstrate the competitiveness of new nuclear and will fair for consumers. It is in the interest of both the Government and EDF to ensure this is the case.”
Fukushima-style tsunamis threaten 23 other nuclear sitesTsunamis and natural disasters like the one which sparked a meltdown at Fukushima and evacuation of the surrounding areas could threaten 23 other nuclear sites around the world, according to research published the Natural Hazards journal.
Noting the “clustering” of threatened sites in South and South-East Asia, they want that funding is crucial to look at the problem. They have identified four areas for urgent policy attention, including the need for funding to translate the scientific risk assessment into effective policy.
World-Leading tidal energy system achieves 5GWh milestoneSeaGen, the first commercial-scale tidal stream energy system has just achieved a new milestone of 5 gigawatt-hours (GWh) of tidal power generation since starting operation at Strangford Lough in North Ireland. That is equivalent to the annual power consumption of 1,500 British households. The Siemens-owned system is one of the largest tidal stream power projects today.
This latest milestone, adding an additional 2GWh of power since January this year, is an exciting development for this proven technology, whose potential for commercial deployment as part of the future energy mix is now recognised. Global carbon reduction commitments are increasing demand for reliable marine current power.
