Energy and Utility Management Consultants

Fresh doubts over Hinkley Point C

July 2016

 


Fresh doubts over Hinkley Point C
 
The future of the Hinkley Point C nuclear plant has once again been thrown into doubt, this time by the UK government just hours after EDF Energy confirmed its final investment decision. The French energy company had delayed fully committing to the controversial £18bn project, until the board approved the decision on Thursday, reportedly with a majority of just 10 votes to 7. In a surprising move, the UK government postponed the signing of contracts expected to take place today, in order to conduct another review and announce its decision early in the autumn. Hinkley Point C would become the first new nuclear plant in the UK since Sizewell B in 1995, generating 7% of the UK’s electricity demand.
 
 
Client saves £6.5k through CTP’s expert CRC advice
 
We assist one of our clients in fulfilling their obligations under the Carbon Reduction Commitment (CRC). By providing additional advice, namely that LPG was no longer included in CRC, we enabled our client to make a saving of £6.5k for the 2015/16 CRC year. A shared savings consultant would typically invoice the client for 50% of this amount, but under our fixed and transparent fee structure the client received the full saving.
 
The ever-changing rules and regulations of the energy industry goes a little way to highlight what a complex and challenging market we operate in; one that affects every energy-using business in the UK. The importance of employing a professional and knowledgeable utilities consultant cannot be overstated; get in touch using the links on this page for a non-committal chat and see just how our Utility Bureau Service (UBS) can benefit all your business energy requirements.
 
 
Wholesale Market Price Update - 29th July 2016
 
Wholesale electricity and gas prices increased dramatically following the news that the expected 42 day closure of the Rough gas storage facility has been extended until spring 2017. The Rough facility, which accounts for 70% of the UK’s gas storage capacity, will not be able to inject any more gas into storage ahead of winter, and there is even a risk that withdrawals may not be possible. If a cold winter is experienced then costs could be very high, with the UK potentially reliant on importing gas, compounded by a recent drop in value of the pound sterling.
 
In the past week, prices have dropped back slightly, mainly due to falling oil prices. The oil market has fallen by 20% compared to early June, with Brent crude currently priced at around $42/bbl – the lowest level seen since April. The main driver is seen to be oversupply in the US, bolstered by potential for an increase in shale output. Wholesale gas prices have fallen accordingly, further impacted by increased imports from Norway as gas field maintenance ended. Electricity prices have followed the same trend, with falling wind output next week expected to be compensated by below seasonal temperatures, resulting in lower demand due to reduced air-conditioning usage.
 
 
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