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Recent Events Cause Market Ripples |
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Monday, 10 May 2010 11:15 |
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. |
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Taking the pain out of Utilities Management |
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Wednesday, 28 April 2010 12:27 |
A recent countrywide survey by consumer champion Which? Switch - part of the Which? Group - has reported that all of the UK's major suppliers are below average in terms of service to end-users. Using their familiar 5-star rating system over a variety of categories such as 'Billing', 'Customer Service' and 'Value for money', and an overall percentage score, the damming report concludes that each company scored under 80%, putting them firmly in the 3-star or below category.
With a major bugbear of customers being billing issues and the inevitable customer services contact that comes with it, it's shocking to see that the report highlights so many suppliers still scoring from 1 to 3 stars in both of these categories; which are considered to be the most important to consumers paying for a service.
As part of our Utility Bureau Service (UBS), our Utility Consultants will verify clients’ invoices for accuracy and raise any issues discovered with suppliers in order to reach a prompt and satisfactory resolution. This negates the need for clients’ to be put on hold for hours on end and having to repeat themselves to a number of different departments! Let us raise these queries for you with our expert knowledge and supplier contacts in order to resolve any issues quickly and efficiently.
If you're not already taking advantage of our full Utility Management service, get in touch now using the 'Contact Us' link on the left hand side of this page. |
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Risks of Offshore Oil Exploration |
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Tuesday, 27 April 2010 13:24 |
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BP has now realised the very major issues that can result from offshore drilling, following an explosion at a rig operated by a contractor near the coast of Louisiana.
The Transocean rig, Deepwater Horizon, that last week caught fire and then sank, caused the deaths of 11 workers and is now a growing environmental disaster. The sunken rig is releasing about 42,000 gallons of oil daily into the sea from a smashed pipe and open wellhead. The event is the latest example of the huge risks in exploiting the worlds underwater oil reserves.
BP has increased its use of robots in an attempt to stop the gushing of oil – but emergency work at such a depth is unusual and success is far from certain. Utility Management on this scale and in such a location becomes essential, dangerous and urgent. |
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The Effects of Global Warming |
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Monday, 26 April 2010 07:47 |
The effects of Global Warming - melting ice, rises in sea levels and more heavier storms with increased rainfall - could affect the Earth’s crust resulting in increased volcanic activity and earthquakes and resulting tsunamis. These are the predictions of the Royal Society in recently published papers.
Such effects come about because of movements of ice from ice sheets and glaciers into the oceans. The colossal weight transfer will be sufficient for the earths crust to bend producing magma causing volcanic and seismic activity.
Energy management and Utility Management continues, therefore, to be about reducing Global Warming as well as cheaper energy contracts and cost savings. |
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Airport Closures Save the Environment |
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Wednesday, 21 April 2010 16:13 |
Reports today are claiming that the closure of airports across Europe will save as much carbon dioxide as that emitted by several developing countries over a whole year. The Aviation Environment Federation have assessed that the carbon dioxide savings covering just four days is greater than that emitted by Malawi, Rwanda, Sierra Leone and approximately 50 other developing countries in a year.
Aircraft throughout the world contribute about 2% of all global emissions of carbon dioxide. In the UK, this figure rises to 6% reflecting our heavy dependence upon air travel. The knock-on effect could be that permanent savings might result as the alternative ways of communicating by electronic means rather than personal visits, might become a habit as the savings in time, cost and emissions are potentially massive. As Energy and Utility Consultants, we fully endorse the alternatives if the environmental and cost saving benefits are sustained.
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The Election and the Environment |
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Tuesday, 20 April 2010 09:02 |
Neither of the two main parties are focusing on the environment in this election. Both parties refer to the environment well down in their respective manifesto documents with Labour’s being third to last and the Tories second to last - hardly the priority it surely deserves. Even the Liberal Democrats manifesto document refers it just over half way through.
A fair bit of the Labour manifesto contains little that’s new whilst the Tories have a few fresh ideas and support the Governments greenhouse gas targets. The Liberal Democrats have come up with some different ideas such as an eco-friendly cash back scheme for replacement windows with double glazing and replacement of ageing boilers.
With the public at large becoming more aware of the harm being sustained to the environment and the demand for organisations to continue to achieve Energy Savings, with ever increasing Government legislation, perhaps the main parties have missed an opportunity to win over some of the undecided. |
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Read How Our Clients Benefit |
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Monday, 19 April 2010 12:43 |
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For a new client of ours, we have recently achieved the following savings:
- The water company went to one of the clients’ sites and found that the water meter was missing and so installed a new meter. The water company then billed for the missing meter using estimated annual consumptions in place of estimated readings. We refused to accept this approach and subsequently agreed for them to re-bill based upon a daily average from actual reads on the new meter which is currently non consuming.
- The electricity supply company for a different site billed the consumption between 31.12.09 & 31.01.10 twice on two separate invoices. We again spotted this through our checking system.
These two very simple opportunities are the types that are easily missed. In theses instances the saving amount to about £2,200 - modest but they all count.
For another client moving out of a site, getting an account re-billed to actual meter closing read saved £14,493.52 – not so modest a saving! However, it took quite a while to convince the supply company that their original approach was erroneous.
Yet more evidence of our effectiveness as Utility Consultants |
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Monday, 19 April 2010 12:38 |
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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. |
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Monday, 19 April 2010 11:11 |
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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!
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More Government Funding For Renewable Energy |
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Monday, 12 April 2010 09:25 |
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Government ministers have confirmed a further £5 million of investment towards the research and creation of the world's largest test site for marine energy devices, just 10 miles from the coast of Cornwall.
Underwater electrical cabling will come ashore and connect to the grid in Hayle, via a new sub-station being built next to the proposed site of a new marine energy business park - the South West's Regional Development Agency's £42 million 'Wave Hub' project.
This news comes hot on the heels of reports that Siemens, one of Europe's largest engineering conglomerates, is to build a wind turbine plant in the north east of England, creating not only hundreds of new jobs, but also ultimately more renewable power to the grid. This plant was only given the go-ahead once Siemens were happy with the incentives provided by the government - highlighting that this is still as high on the agenda now as it has been for the last few years.
As the UK looks to push its dependence on fossil fuels further towards renewable energy, this all looks to solidify the commitment to meet the self imposed target of 15% renewable energy in the UK by 2020. |
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