Most Businesses Facing Electricity Price Increases From April 2010.

New Electricity Distribution prices were implemented across the UK on 1st April 2010.  For most businesses, these price changes will result in higher bills.  The bills you receive from your electricity suppliers in early May should include these new distribution prices.

Details of the effect these prices will have by region can be seen in a document published by Ofgem, by following this link.  The price changes by region can be found on page 12.

To discuss how these changes will affect you, contact us today.

 

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.

Chart: Longe Range Gas Stores 29/01/10 courtesy of National Grid

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.

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.

"Far easier to understand than any DEFRA seminar."

The recent CRC Energy Efficiency Scheme seminar, held at Brampton Heath Golf Centre in Northampton on 9th December 2009, attracted an excellent audience of businesses affected by the Scheme.

As well as the comment quoted above, attendees had more the say about the morning's information:

• "Informative and well presented"
• "... the morals of the contents of the day were very relevant"

Make sure you're prepared for the CRC Scheme.  Attend our next seminar, which is being held on:

Wednesday 3rd February 2010, 9.30 am at Blackley Golf Club, Manchester M9 7HW.

If your think your business will be affected by the CRC Energy Efficiency Scheme, register now to book your place. If you don't think your business is affected, you may be surprised - don't leave it to chance.

A map to the venue is shown here:

(View Carbon Reduction Seminars from Utility Masters Ltd, Blackley Golf Club, M9 7HW in a larger map)

Click on the map and then the placeholders to be given directions from your own location.

Carbon Reduction Commitment Registration Packs will be arriving on business' desktops soon:
Is Your Organisation Ready for CRC?

The Carbon Reduction Commitment

It's important that your organisation is ready for this important new Emissions Reduction scheme. Prepare for compliance by attending one of the seminars from Utility Masters Ltd.

Free CRC Seminars by Utility Masters Ltd

The Carbon Reduction Commitment comes into force in April 2010 and will have an impact on all organisations with half-hourly metered electricity. Utility Masters will be holding seminars in October 2009, to:

• - Help businesses understand how the CRC will impact them.
• - Illustrate how measurement will take place in the Carbon Reduction Commitment scheme.
• - Show the costs and benefits of compliance with the CRC.
• - Explain the role of Responsible Persons and the potential impact of non-compliance.
• - Clarify the Early Action Metric and how businesses can benefit from it.

 

Register your Interest Now

Seminars are being held on:

• - Tuesday 13th October 2009
• - Wednesday 21st October 2009

Each seminar will begin with registration at 9.30 and finish with lunch at 12.00 until 1.00pm.

Email your interest now, indicating which day you'd prefer.  Or call 0161 785 7955 to discuss the seminars.

 - Phill.

It's a fact that most businesses use energy consultants these days.  That makes sense: you're busy running a business and UK energy has become more and more complicated in recent years.  So, you employ an expert to look after your energy tender, and to tell you when to go to market.

There are a lot of good energy consultancies out there.  There are also some who aren't so good.  If you use a consultant, you'd expect to be told when it's a good time to look at your gas and electricity contract renewals, right?

Energy prices in the UK wholesale markets have dropped by over 50% since July 2008.  That's a huge opportunity to save money for lots of UK businesses, and the graph below shows how the prices have been moving over the last 12 months.  It's now much more important WHEN and HOW you buy your energy, rather than which supplier you choose. 

Don't wait for your consultant to call you if you've not looked at your contract renewals yet.  You might save your business a lot of money.

Phill.