Energy Price Watch

Small Falls in all Prices

rh@cliffordtalbot.co.uk (Richard Hopkins) — Thu, 02 Sep 2010 11:51:33 GMT

The past week has seen more small falls across the oil, gas and electricity wholesale price markets. Another typically steady August - the past 5 years have shown that prices at the beginning of August are traditionally within 4% of the prices at the end of August. This is usually accredited to the somewhat predictable summers we have (whether we like to admit it or not, British summers are always the same and never quite as hot as we want!), and the run up to the 'October round' - where the bulk of energy buying is typically undertaken, with companies securing forward contracts for their energy needs. During this time, suppliers expect business to be competitive and so price as keenly as the markets allow in order to win offers.

It is with this in mind that CTP are looking to procure energy contracts for our clients at this competitive time for the supply periods starting as far away as May 2011, and possibly beyond.

Using our industry contacts and knowledge will enable us to do this - typically suppliers will not quote further than 6 months in advance - another reason for you to take advantage of our expert energy procurement team. Not only will we secure the energy at best possible prices, but our Utility Consultants will ensure everything related to the life of the contract goes as smoothly as possible as we carry out our invoice validation on your behalf - this not only saves you the inconvenience and frustration of receiving incorrect bills which need to be rectified, but also the valuable man-hours related to ensuring contracts and spends are all correct.

To take advantage of our full Utility Bureau Service, just get in touch using the links on this page.

Small Climb After Recent Falls

rh@cliffordtalbot.co.uk (Richard Hopkins) — Thu, 05 Aug 2010 08:08:23 GMT

After the falls in the markets we've been seeing since the start of July, the last few days have seen both the gas and electricity markets increase a little. These rises can be considered normal behaviour for the markets at present, and is nothing which should cause undue alarm. Regular peaks and troughs are in keeping with historic patterns - during the climbs to the highest points of the markets, and the plummets to the lowest points, we have always seen little ups and downs.

Although not solely accredited to the recent movements, the fact that the Didcot Power station fell off-line last week after scheduled maintenance - suggesting it may be off-line for most of the summer - and the imminent reopening of the Transitgas pipeline in Switzerland which is expected to boost European demand for UK gas will have had an upward impact on forward prices. Conversely; Rough, the UK's largest gas storage facility, is due to close for maintenance in mid-September - freeing up gas to the markets that would otherwise be injected into the site.

As Utility Consultants we are continuously watching Utility Prices and issues that might affect them

Prices Relax and Level Out

rh@cliffordtalbot.co.uk (Richard Hopkins) — Wed, 21 Jul 2010 14:28:24 GMT

It is with a small sigh of relief that we can report that the energy markets have dropped over the past week. Although the upward trend was not unexpected - we can't enjoy rock-bottom prices all the time - at the start of July we hit a high electricity wholesale price of almost 5 p/kWh, and gas wholesale of 1.95 p/kWh - the highest prices since the market slump back in February 2009.

Oil prices have been fluctuating within $8 per barrel either side of the $80 mark since the start of the year and aren't following the behavior of the gas and electricity markets quite as closely as historically, but are still a very good guide for both of those markets.

Contributing to the recent fall in prices is increased LNG (Liquefied Natural Gas) storage and deliveries as more and more we embrace this new method of transporting and storing gas - also recent National Grid reports suggesting that the UK has comfortable amounts of surplus generation available for the coming winter.

Shared savings consultants enjoy falling prices because they can claim to be saving client's money by their own endeavors, whereas, it is actually the market that is providing the savings. Just a reminder that we work on an agreed fee basis - this means our fees are transparent and easily incorporated into your budgets. Nor do we take any payments from suppliers or their business partners which helps us remain completely impartial and have only our clients' best interests at heart. Compare this with brokers, who are paid commission by suppliers which is added to the charges made for energy in p/kWh, therefore being completely hidden to you the client. Our costs are lower than brokers and shared saving consultants and client’s know what it is costing.

In order to make the most of our expert Energy Consultants and Utility Consultants for your energy procurement needs, as well as bill validation, which is not offered by all consultancies (and certainly not by brokers!) and extra benefits such as tenant billing, just get in touch for a chat and see what we can do for you

Gas & Electricity Prices Continue to Rise

rh@cliffordtalbot.co.uk (Richard Hopkins) — Wed, 07 Jul 2010 09:51:08 GMT

Unfortunately, we're continuing to see a rise in wholesale prices of both electricity and gas and they are now at the highest point since February 2009 when the market returned to 'normal' levels after the freak year that was 2008.

We have been seeing a recent steady upward climb with peaks and troughs leading to a market reminisce of the 2007 markets, but we're still in an excellent place to be securing long-term contracts. It is widely assumed that the lowest point is behind us for a while, but with the forecast increase in Liquefied Natural Gas (LNG) deliveries, the balmy summer and gradual recovery of the economy a repeat of the spike up to the wholesale prices of 9.0p/kWh in July 2008, as opposed to the current 4.8p/kWh, is unlikely, but unfortunately we can never say never.

In order to avoid any unexpected increases in the market and secure your energy contracts - get in touch now to take advantage of our energy procurement experts, and why not find out more about our full Utility Bureau Service which includes Bill Validation, Utility Consultancy and Tenant Billing amongst other benefits, and all at a fixed, agreed price.

Rising Market Slows

rh@cliffordtalbot.co.uk (Richard Hopkins) — Tue, 22 Jun 2010 12:08:59 GMT

Following the last 6 weeks of steady price increases, the last few days has seen the market soften somewhat. Although the current position is still akin to markets in 2005-2006, and is in a very good place, it might be that the lowest points reached in February and April will not been seen again for the foreseeable future.

As experts in Energy Procurement, we put the majority of our clients' business out to tender at the beginning of this year and have secured the bulk of our contracts for this calendar year, with huge savings being seen over both current and previous contracts, and now over the current markets.

Although predicting the energy markets has been described by at least one noted commentator as "a mugs game" - with our in-depth market knowledge and preferred industry partners, our Utility Consultants constantly track the market and look at worldwide events which may cause market changes. We are also in regular contact with all of our clients for energy management as well as bill validation, which enables us to secure the best deals possible, at the best time to suit our clients and take advantage of the market.

Contact us now if you're not already reaping the benefits of our Utility Bureau Services.

Slight Increases in all Power Prices

rh@cliffordtalbot.co.uk (Richard Hopkins) — Tue, 25 May 2010 13:00:59 GMT

The last week has seen an unwelcome, but not unexpected rise in the wholesale prices of gas, electricity and oil - with prices peaking at approximately 11% higher than those of the same time last month. Although the middle of May saw a dip in prices, an upward continuation has since come into place showing a slight, but steady increase.

As always, no one factor can be solely responsible for this, but it can be assumed that the uncertainty over the new coalition government and their confusing and somewhat contradictory plans for energy and climate change can be taken into account.

As an expert in Energy Procurement and Utility Management, we have taken advantage of the recent low markets for many of our clients who will be enjoying the savings secured as far away as September 2012 in some cases.

If you aren't yet taking advantage of our Utility Bureau Service, it's not too late to get in touch and see how we can benefit your company's energy management and spending.

Recent Events Cause Market Ripples

rh@cliffordtalbot.co.uk (Richard Hopkins) — Mon, 10 May 2010 11:15:27 GMT

The end of April and start of May has seen several worldwide events which have resulted in an adverse impact on the energy markets - these include:

● The blown-out well at the bottom of the Gulf of Mexico which is leaking approximately 5,000 barrels of oil per day
● A recent drought in south-west China which has decimated hydro power and led to an increase in coal burning
● An explosion at a coal mine in Kemerovo, Russia, which produces more than 8 million tonnes of coal per year

As well as being human and environmental disasters, these occurrences combined have, in part, seen a rise in the prices of electricity and gas. Fortunately the markets are still in a terrific place to consider the closing of any outstanding forward contracts; it's advisable to think about acting sooner rather than later in case the predicted 'downward correction' doesn't occur as soon as we'd like.

Feel free to contact us using the details on these pages if you wish to discuss taking advantage of our Utility Bureau Service and expert Utility Consultants.

Oil Prices to Peak

sjc@cliffordtalbot.co.uk (Steve Clifford) — Mon, 19 Apr 2010 12:38:05 GMT

Latest reports indicate that demand for oil will probably reach an all-time high sometime this year. Increased global consumption for oil, fuelled by a near-20 per cent leap in demand for oil in China, could not only delay economic recovery in the UK and continental Europe, but, for our Utility Management clients and Energy Management clients alike, could have the effect of pushing up prices of not just oil, but also of electricity and natural gas over the medium term.

As prices for electricity and natural gas are still relatively low (levels currently similar to those experienced as far back as June 2005), now is a very good time to think about contract renewals. We have arranged new contracts for most of our most of our Utility Management clients.

Energy Price Update

rh@cliffordtalbot.co.uk (Richard Hopkins) — Mon, 19 Apr 2010 11:11:03 GMT

The weekend of the 17th and 18th of April saw slight increases in both natural gas and electricity wholesale prices. As is always the case, this increase is related to a number of issues, and not just one single factor. In this case the increases can be accredited to, amongst other things, an upward correction of many European markets and the 'bulk buying' of many contracts during the recent low markets; the extra purchasing creating an increase in activity, pushing prices up.

The good news is that the crude oil prices have dropped slightly over the same period, lessening the impact and we're still witnessing market levels akin to those of 2007. It’s about time fuel at the pumps started coming down too but this will depend on how the pound compares to the dollar in future. At the moment the pound is weaker than when levels at the pumps were similarly high in July 2008. If it weren’t for the weak pound, prices would be much lower. On the other hand, if crude oil prices rose to the levels of July 2008, fuel prices at the pumps would be considerably higher!

Prices Remain Stable

rh@cliffordtalbot.co.uk (Richard Hopkins) — Wed, 24 Mar 2010 09:10:18 GMT

Both gas and electricity prices have remained steady over the last fortnight. With reports of an additional 1,200MW of offshore generation pencilled in for the Scottish coast and imminent increases in LNG deliveries and milder weather, supply fears are being allayed despite stored capacity being lower than annual averages. With the markets as low as they are, it's hard to envisage many more drops so remember to “strike while the iron is hot”.