March 2, 2016

Gas Market Update

Filed under: Business Gas — admin @ 9:27 am

The gas market is maintaining a longer term bearish trend according to Ichimoku clouds analysis despite the market price action, U.K. natural gas contracts for 2016 summer delivery have fallen every month since February 2015, regularly reaching new record lows, partly because of a global oil glut that’s depressed commodity prices. Crude’s 25 percent drop since October is likely to further pressure prices on hubs. Gas system in U.K. forecast oversupplied as demand falls below seasonal avg amid warmer-than-normal weather. Gas for within-day delivery drops 3% to 30.2 p/therm by 9:24am London time: broker data compiled by Bloomberg. April contract falls 0.3% to 29.26 p/therm on ICE Futures Europe after earlier declining as much as 0.4%.
Summer 2016 gas slides 0.5% to 28 p/therm on ICE; has declined every mo. for yr, falling 5.2% in Feb. and 3.8% in Jan.

Flow/System/Storage update: Demand for today has declined since yesterday, reaching 298.42 mcm level, and the system is currently 8.67mcm long, which is an increase from yesterday.

 

 

February 3, 2016

Are electricity prices on the way back up?

Seems to be the million dollar question at the moment. After the best part of two years of dropping wholesale prices, many in the industry now believe the tide has turned and prices have not only bottomed out, but may in fact bounce back rather quickly.

The drop in oil prices has had a major effect on electricity prices but with experts now warning of increases coming at the pumps, this seems to reinforce the view that electricity prices have bottomed out.

For many it is not a question of when prices increase but how quickly they will rise. With some arguing that the market is showing a very similar pattern as in 2008, just before the huge increase in prices for UK business and domestic users alike.

Two of the big six marginally increased prices this week for 1, 2 and three year business contracts. Business customers tend to feel the increases before domestic customers as their contract prices tend to follow the wholesale curve more closely than the domestic market .

Wholesale market forward curve

A upward market in 2016

 

February 1, 2016

Gas transmission transportation charges for April 2016 issued

Filed under: Business Gas — admin @ 12:48 pm

National Grid issued the final gas transmission transportation charges on Friday 29 January. Transportation owner revenue has increased for 2015-17 by £51mn or 7% to £800mn from the 2015-16 level. The TO entry commodity charge will increase by 4% to 0.0499p/kWh and the TO exit commodity charge by 7% to 0.0223p/kWh. The SO allowed revenue has decreased by £1mn from the 2015-16 level to £271mn. The SO commodity charge will decrease 0.7% to 0.0147p/kWh. The St Fergus compression charge will increase by 23% to 0.0187 due to increases in non-energy costs associated with the use of the electric compressors. The Connected System Exit Point administration charge will reduce to 0.829p/day or £0.30 per year per supply point. Credit J Cunningham .

January 28, 2016

RWE- Npower to pay £26mn for failing to treat customers fairly

Filed under: Business Electricity — Tags: — admin @ 10:49 am

Ofgem confirmed on Wednesday 27 January its decision to impose a customer redress package of £26mn on RWE npower due to billing issues and failures in handling customer complaints correctly. The regulator’s investigation found that after installing a new IT system in 2011, RWE npower issued over 500,000 late bills between September 2013 and December 2014. Some customers received inaccurate bills and the supplier failed to resolve these issues effectively. The IT system also contributed to a significant number of complaints being recorded incorrectly. Ofgem has now set the supplier multiple targets to resolve its ongoing invoicing and complaints issues, which it must resolve by 30 June 2016 or otherwise stop all proactive domestic selling.Credit J Cunningham .

January 27, 2016

British Gas announces organisational changes

Filed under: Business Electricity — Tags: — admin @ 11:29 am

Centrica confirmed on Tuesday 26 January that, from April 2016, British Gas would no longer operate through its residential, services, and business arms. Two new business units (BUs)––UK Home and UK Business––will be created, mirroring the structure that Centrica has established in North America. These BUs will operate mainly under the British Gas brand. In response to growing demand for “innovative” offerings in both sectors, the newly-formed Connected Homes and Distributed Energy & Power units will also sell through the BUs to residential and business customers. Centrica chief executive Ian Conn said: “Repositioning our customer-facing businesses around our principal customer segments is a fundamental and important step.”  Credit J Cunningham.

January 26, 2016

UK facing electricity supply “crisis”, engineers warn

Filed under: Business Electricity — Tags: — admin @ 10:47 am

The government’s plans to close all coal-fired power stations and losses among the nuclear power fleet will leave the UK facing an electricity supply gap of up to 55% by 2025, according to the Institution of Mechanical Engineers (IMechE). The organisation’s Engineering the UK Electricity Gap report, published on Tuesday 26 January, said plans to plug the gap by building CCGTs were “unrealistic”, and that the UK had “neither the resources nor enough people with the right skills” to build new plant at the required rate. IMechE head of energy and environment Jennifer Baxter said the UK was facing an electricity supply “crisis” and that too little emphasis was being placed on reducing demand on the system. Companies, she added, had insufficient incentives at present to invest in electricity infrastructure or innovation.

The government’s plans to close all coal-fired power stations and losses among the nuclear power fleet will leave the UK facing an electricity supply gap of up to 55% by 2025, according to the Institution of Mechanical Engineers (IMechE). The organisation’s Engineering the UK Electricity Gap report, published on Tuesday 26 January, said plans to plug the gap by building CCGTs were “unrealistic”, and that the UK had “neither the resources nor enough people with the right skills” to build new plant at the required rate. IMechE head of energy and environment Jennifer Baxter said the UK was facing an electricity supply “crisis” and that too little emphasis was being placed on reducing demand on the system. Companies, she added, had insufficient incentives at present to invest in electricity infrastructure or innovation. Credit J Cunningham

January 20, 2016

Extra Energy comes bottom of Which? phone answering poll and dont even score 1 out of 10 eith Trust Pilot!

Filed under: Business Electricity — Tags: — admin @ 11:47 am

Extra Energy is the worst energy company when it comes to answering the phone to customers, Which? says.

Extra Energy takes up to 37 minutes to answer phone calls from its customers, new research from Which? claims.

Which? Called 22 energy firms between September and October, calling each supplier 12 times. And Extra Energy was easily the worst – the shortest time that it took to answer the phone was 17 minutes.

It seems that Extra Energy’s customers are very unhappy with the levels of service they are receiving.

Trust pilot gives them a score 0f 0.6 out of 10!

January 15, 2016

Ofgem rejects proposed changes to Smart Meter Installation Code of Practice

Filed under: Business Electricity — Tags: , , , — admin @ 10:33 am

The regulator announced its decisions on Thursday 14 January to deny approval for three change requests to the Smart Meter Installation Code of Practice (SMICoP), all raised by SSE. The first (CR027) sought to clarify which parties had to comply with the SMICoP by amending the code’s definition of a “member”; the second (CR029) would have allowed a greater number of members from larger suppliers to be a part of the SMICoP governance board, facilitating voting rights for larger independent suppliers; the third (CR028) sought to set a standard format and timing for self-certification statements (where the supplier agrees to the SMICoP before beginning installations). Credit J Cunningham .

January 14, 2016

Standard energy tariff customers being “ripped off”

Filed under: Energy News — Tags: — admin @ 10:27 am

Energy firms could be doing much more to slash prices for consumers. Analysis suggests that over the last two years wholesale gas prices had fallen by 51% and wholesale electricity costs had dropped by 33%. This could have been passed through as price cuts of around 25% on gas and 11% on electricity for all UK customers, yet all loyal customers have seen an average of 5% off gas bills and nothing off electricity bills. Overall, this suggested consumers were being “short-changed” to the tune of £3bn.

January 12, 2016

Scottish Labour Party warns on fuel poverty funding cuts

Filed under: Energy News — Tags: — admin @ 8:52 am

The SNP government is planning to cut the fuel poverty budget by £15mn in 2016-17, Scottish Labour has warned. In a statement on Sunday 10 January, the party said that the final fuel poverty budget for that year was expected to fall by 13% from the £119mn expected to be spent in 2015-16. The cut comes despite the fact that recent figures showed no meaningful reduction in fuel poverty in Scotland in 2014. Scottish Labour communities spokesperson Ken Macintosh said: “The public will be utterly baffled to discover that the SNP have decided to pick this moment to cut the budget to tackle fuel poverty. Given what is happening across the country following the flooding, people need help more than ever to heat their homes.”Credit J Cunningham

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