If the current exceptionally cold weather continues the UK could deplete its long range gas stores by as early as the second week in March. 

Most of the UK’s seasonal gas storage is kept at a North Sea depleted oil field known as Rough. Gas shippers and suppliers spend the summer months filling Rough with enough gas to see us through a typical winter. On cold winter days, the UK does not have enough imports to meet demand so needs to withdraw gas from Rough. On warmer days there is an opportunity to inject surplus gas into store.

 As you may well have noticed, this winter has been exceptionally cold throughout December and January. If temperatures stay as they are throughout February, there will be a serious shortage and National Grid will need to interrupt supplies. This would have a significant impact on spot market prices and would no doubt increase futures prices at the same time.

Despite the recession, UK energy prices have shown an upward trend over the last few years.  For most of the last year (January to December 2009), electricity annual contracts have moved between £40 and £50 per MWh in the wholesale markets.

Many buyers have been waiting for prices to drop back to £40/MWh again before fixing their contract renewals out of April 2010 or October 2010.  However, annual prices in 2008 peaked at around £90 and, with economic pointers hinting at the end of the UK recession, there is a significant risk of prices climbing again on the back of more positive sentiments about demand.

Is it worth risking an increase of up to £50 (against the peak) to try and save £5?  Fixed energy buyers could benefit from placing now.

Visitors to Utility Masters over the last few weeks have been forgiven for their strange glances around the office, as the male staff all grew fantastic facial hair in aid of Tachetastic, a fund-raising competition for The Prostate Cancer Charity.

The gents each made a donation, and some of the ladies put up their own money to sit on the judging panel - raising £270. Utility Masters Directors matched the amount, totalling a splendid £540 donation to help the charity provide the support, information and research needed to tackle prostate cancer.

Tim Whiting's magnificent moustachio'd mush won the analyst a trophy and the pride of his impressive victory.

The article above is reproduced from The Oldham Chronicle.

The recent cold weather has directly affected some large energy users in the UK, as the country's energy network was unable to meet demand over the last few days.  Gas users with interruptible supplies were asked to stop using gas at peak times, to help National Grid to balance the UK's energy needs.

This action is unprecedented in recent times and prompts questions about the security of energy supplies in this country, not only during times of unusual weather like wer're experiencing, but onwards into the medium and longer term.

Some commentators are pushing hard for more gas storage to be built in the UK, to protect our diminishing indutrial base from further erosion of their productivity.

Articles in today's Financial Times highlight some of the issues raised excellently:

• Are the UK natural gas supply fears warranted?
• A letter from the EEF and Energy Intensive Users Group

The UK cold snap has affected the number of Triad Warnings from all suppliers this Winter, with accurate forecasts of daily electricity demand proving very difficult for The National Grid to provide.

Unpredictable industrial production, added to a higher domestic demand caused by the increased need for lighting and heating, has resulted in the usually predictable Triad time windows being more difficult to pinpoint.

Utility Masters has a class-leading Triad Warning service and we will continue to strive to be the best provider of this service throughout this Winter, aiming to minimise disruption to our customers' activities.  For more information, please email us at info@utilitymasters.co.uk or call 0161 785 0404.