Energy and Utility Management Consultants

UK energy policy not impacted by Brexit, declares Leadsom

July 2016

 


UK energy policy not impacted by ‘Brexit’, declares Leadsom
 
The UK’s exit from the European Union will not affect Energy Policy, Andrea Leadsom has claimed in a speech delivered to the Utility Week Energy Summit this week. The energy minister, and candidate for the Conservative party leadership, was clear that there would be “no change to our commitment to a clear energy policy framework” following ‘Brexit’. Outlining the government approach to the “energy trilemma” of security, affordability and decarbonisation, Leadsom explained that ensuring energy security was “non-negotiable” and would be achieved through investing in new generation, with the Capacity Market providing further support.
 
 
CTP save client £2.1k, but additional saving missed through delay
 
A new customer recently approached us to undertake an energy procurement exercise for their gas supply to a recently purchased large office building. We conducted a competitive tender exercise and secured a contract that met their extended payment term requirements and without a security deposit, despite the company being registered overseas.
 
We secured our client a £2,180 + VAT annual discount compared to their renewal offer. Unfortunately this property was purchased several months prior to our appointment and while a backdated contract was offered this would have been a false economy on this occasion. If the customer had approached us before or immediately after purchasing the property we could have given advice and taken early action that would have saved them an additional £2,500 (~20%) by avoiding high deemed rates.
 
Beyond just getting a competitive energy contract we can give our customers practical advice and support to enable them to manage their supplies in a smarter way. As in this case it is often these opportunities that create the greatest savings for our clients.
 
Get in touch with our expert team of Energy Consultants today using the links on this page to discuss any queries you have with Business Energy Procurement and Energy Management.  In these volatile times, we can provide good advice, and we're always happy to help.
 
 
Wholesale Market Price Update - 6th July 2016
 
In the immediate aftermath of the EU referendum “Leave” vote, wholesale electricity and gas prices rose sharply. The main cause was the falling value of the pound sterling, which increases the cost of gas imports, outweighing the bearish factors of falling oil, coal and European energy markets. Wholesale energy prices have since continued to rise, with the pound remaining weak and other markets recovering - both oil and coal rebounding to previous levels within a few days. Electricity prices for the coming winter have been particularly impacted with concerns over supply margins, and are now at the highest level since July 2015. The Rough gas storage facility remains closed whilst a well-testing operation continues, and concerns that UK storage will not be filled ahead of winter, particularly if there is any extension to the current 42 day closure, are continuing to weigh on long term gas prices.
 
 
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