February 28, 2012

Energy Price Volatility — A major headache for UK business.

Filed under: business energy — admin @ 9:20 am

Continued nervousness is playing on both Electricity and Gas prices. Geopolitical tensions are having an undesirable effect on market sentiment. Iran, Syria and the Euro zone crisis are just a few of the issues that have pushed up prices in the short term.

The massive fire at Tilbury power station yesterday has also added to the general nervousness of the power market.  Overall the medium term picture is still one of falling electricity and natural gas prices due to falling demand but the current situation underlines how sensitive the markets are to world issues.

As the window for Israel to strike at Iran’s nuclear infrastructure is closed and when the situation calms in Syria we may see quite a rapid drop in both Gas and Electricity prices in the UK.

February 23, 2012

Bullish gas market pushs up business gas costs

Filed under: Business Gas — admin @ 11:30 am

Wednesday was a bullish day in the UK wholesale gas market. Despite low demand, it appeared as though the system struggled to cope for most of the day. In addition, crude prices remained strong providing further incentive for the market to move higher. Both the March and Summer ’12 contracts traded nearly 2p/th above their closing level on Tuesday. Prices drifted off slightly after the ICE close but the front 6 months still showed gains of over 1.5p/th on the day. The effect across the rest of the curve was less significant but all contracts still posted day on day gains.

 

Business gas price Data

 

 

 

 

 

 

 

 

 

Courtesy of Corona Gas

February 22, 2012

A Greener Place to Stay!

Filed under: business energy — Tags: — admin @ 2:09 pm

Many tourists who have decided to remain in the UK for their holidays this year have expressed an interest in staying in hotels which are showing some concern for their environment by trying to reduce their business energy costs.  There is considerable evidence to show that these visitors want to stay in hotels which are making headway in the reduction of their carbon footprint.  This is borne out by visitors feeling that these hoteliers are likely to offer a higher quality service.

How likely this is, isn’t clear, but wanting to stay in a hotel where they are concerned about the future of the planet seems reasonable.  Another point is that if these hotels make a higher charge because of measures they have incorporated, and if the client is happy to pay the additional amount that is their choice.

The choice people make is most important, and to allow them to take that decision shows a level of their own commitment towards wanting a greener future.  Hotels are, in many cases, providing key cards which allow entry to their bedroom.  These same key cards in some instances are able to switch off the lights when no-one is in the room, and will switch them back when the key card is inserted upon return to the room.

These same cards can, if programmed, and the technology is available in the hotel, switch heating off and on, cope with air conditioning units and arrange a specific temperature for the shower which when switched on, automatically reverts to the same heat.  These are all wonderful measures which reduce the need for anyone of the hotel staff running round from room to room to check that the lights have been turned off when the bedroom was vacated.

Many hotels now have a note asking whether you require the towels to be changed every day, or whether you are happy to use the same towels for an additional day.  Obviously, every time there is a new occupant in the room it is essential to strip all the bedding and to change the towels.  That is perfect common sense, and indeed an essential part of being an hotelier.  For clients remaining for two or three nights though it isn’t essential to have clean bedding every night.  Very few people will go to the trouble of changing their bedding every day as it isn’t necessary.  In fact think of the amount of waste water and electricity which would be used if everyone were to change their bedding every day.

The same is true regarding towels.  Obviously every time there is a change in occupant of a room, the towels must be changed.  Would you change them every day if you were at home?  You wouldn’t and if there is no necessity for it at home, why would anyone insist on fresh towels every day when staying in a hotel.  Be sensible, enjoy your stay, and don’t place additional stress on the hardworking housekeeping staff.  They have enough, already!

February 14, 2012

Save the Pounds – And the Pennies Will Follow

Filed under: Energy News — admin @ 12:00 pm

A recurring theme which is causing difficulties throughout the UK regarding the reduction in the amount of energy being used in the home and in small and medium sized businesses appears to be the unwillingness to consider changing the way in which we currently use our electricity and gas.

More than sixty per cent of business owners confirm that they don’t know how much electricity or gas is being consumed.  Even though medium sized organisations may have an accounts department which pays these bills, surely there must be a system in place so that directors can check these payments.  It is unhealthy and unwise in the current economic market for the boss of any organisation not to be aware of all running costs and overheads.

Without knowing the situation fully it is difficult to make any decisions as to whether savings can be made.  Once there has been a close investigation then progress can be made towards energy savings

When leaving the business one evening, switch off absolutely everything which isn’t essential.  Obviously, if there are refrigerated units these will need to be left switched on.  Apart from these items if everything else can be switched off.  Next morning when arriving at the business, check the meter and that will give you a base level of the amount of energy which had been used overnight.

It is important to then work all day as usual, but at the end of the day, before going home, do another meter reading which will then show the amount of energy used that day.  Ask an employee to assist, and each day before they go home switch off all non-essential equipment.

Another job for the assistant is to start them with finding small energy-saving ideas which can be passed to you for comment.  If it seems sensible, go ahead and try it.  Change all the light bulbs for low energy ones, which will save a considerable amount of money.  The bulbs also last considerably longer.  Reduce the temperature on the central heating boiler by one degree.   This will reduce the heating bill by approximately ten per cent, and no-one will notice any difference at all.

Ask your assistant to switch off radiators in unused offices, which will also reduce the existing energy bill.  Ensure that computers are switched off in the evening when they are not being used, rather than just having them left on “stand-by”.  This saves a considerable amount of money.  In many areas of the business, you will find that small savings can be made which, but when these are amalgamated they can contribute significantly to reducing the energy bills.

February 13, 2012

From the Frying Pan – and Into the Fire

Filed under: business energy — admin @ 1:32 pm

 

Whilst the big six energy providers have had their own well publicised price increases this year which has culminated in Ofgem, the regulator, seeking answers through their own investigations, other High Street names have entered the energy market looking to provide a better price structure and service than the larger suppliers.

Co-operative Energy entered the market in May 2011 promising that they would have a single tariff to keep it simple and fair for consumers.  They also said that customers have previously been confused by complicated tariffs, changing prices and by unfair contracts.  Co-operative Energy also said that their customers, who would be the owners of the business, would receive a twice yearly profit-sharing deal.

This was only a few short months ago.  However, this early optimism by Co-op Energy has evaporated completely with an announcement that they need to increase their prices – electricity has an eleven per cent hike, whilst gas prices are going to be increased by a huge eighteen per cent.

These increases, which will affect 14,000 consumers, come into effect on 3rd November 2011.  The reason given by the energy provider is related to price increases in the wholesale energy markets.  Co-op Energy has apologised to its customers saying that they have delayed increasing prices for as long as possible, but they have problems which are similar to the rest of the industry.  They continued to explain that the wholesale energy prices which rise during winter months, distribution charges and increasing government levies which fund renewable energy policies are all contributory factors towards the increased charges.

This doesn’t help the customers who will have signed up with Co-op Energy because they felt that the Co-operative brand is a well-known High Street name which they could trust.  The effect of these increases will put additional consumers into fuel poverty.   The current number of households in this situation has been estimated at about seven million throughout the UK.

Chris Huhne, the Coalition Government’s Energy Minister, has already stated that the regulator, Ofgem will have additional powers to enforce the big six energy providers to treat customers fairly.  Will this be extended to include all new companies entering this market?

It is great that other big well respected companies want to provide competition in the energy market, leading to a better deal for consumers.  The problem arises when, after a very short period, claims made by the new providers, turn out to be little more than window dressing in order to encourage new customers.  Whilst accepting that this enthusiasm is good, it obviously needs solid strategies in order to be able to back up their claims, and to ensure that these don’t collapse within a short period of time.  If this isn’t resolved from the beginning, consumers will surely feel that they are jumping from the frying pan into the fire.  In that position, where confidence in the economy as a whole is low, this won’t improve the situation.

February 6, 2012

Waste Not – Want Not!

Filed under: Energy News — admin @ 9:59 am

We need to issue a timely reminder about the new rules and regulations that became law on 28th September 2011.  This is in relation to the disposal of all waste and rubbish!  Every single business from the smallest office with one person to huge organisations with several thousand employees will need to follow these instructions, or they will be liable to receive a fine.

It is now totally irrelevant of the type of business being operated.  Solicitors, accountants, estate agents and at the other end of the scale huge organisations including government offices, factories and supermarkets are included.  In other words there are no exclusions at all.

Before any products are discarded the following will need to be considered.  A preventative use – which actually covers things similar to – documents and whether they require printing, or could just be seen online.  If they do need printing, can this be double-sided.  Does everyone need to receive a copy or can it be shared.  Also emails shouldn’t be printed off without due consideration.

The next items on the list are reuse and recycle which applies to paper and cardboard and requires paper to be shredded and cardboard must be sent for recycling.  These are fairly straightforward as the majority of organisations have shredded paperwork for some years now.  The last item is whether something can be recovered – so can it be reused elsewhere?

This is a new way of thinking and something which needs to be taken seriously.  Energy saving measures can also be incorporated by switching printers and shredding machines off when they are not in use.  The easiest way to tackle the new regulations is to find one employee who perhaps doesn’t have too much responsibility, and task them with ensuring that the company complies with the regulations.  As long as the employee is given help and training on how to start the process, and that they have someone to report back to, then this can be a good opportunity for an employee to take their turn in the limelight.

Whichever way this is tackled it must be started immediately, as with less than two weeks before this legislation becomes law there isn’t much time to dither about it.  Embrace the changes which will need to be made, and they’ll soon become second nature.  Encourage all members of staff to be involved, but ensure that they know the person who is overseeing the project.  It could be interesting how many other suggestions may come from staff members regarding the saving of energy as well as reducing waste.

Once everyone understands the process and their part in it, it will soon become a habit – at the same time try to encourage everyone to switch off as many machines as possible when they go home each evening.

February 2, 2012

We Can Save Our Energy – If We Want To

Filed under: Energy News — Tags: — admin @ 9:47 am

For the first six months of 2011 electricity usage was down 2.7% on the same period as last year.  Interestingly during the second quarter of 2011 the total power consumption was down four percent on the same period in 2010.

Perhaps in both the business and residential markets the consumer is beginning to take heed of our entreaties to reduce the amount of energy being used.  At times it feels as though no-one listens at all; however the news just available regarding the energy savings being made must be encouraging.

Turning the same coin on its head though, and in the scheme of things overall, the latest figure of 4% reduction is fairly minute.  Given that with a little effort it is easy to make ten to twenty percent savings without any loss of comfort, four percent seems slightly pathetic.

Is it possible for every business and every home to take a few minutes in order to switch appliances off, rather than leaving them on stand-by?  Surely for those small businesses where let’s say their energy bill is £2000 per year – a ten percent saving is £200, and it is possible to make greater savings.

Energy prices are moving quite rapidly at present, and for the business owner who is looking to make regular reductions on their energy bill, a consultation with an energy broker would certainly be advantageous.  They are the experts who can advise whether a contract should be taken out to fix the cost for a period of time.  They can also advise as to the right length of time is the optimum to be tied in.  They will be able to discuss tariffs and whether yours is correct.  You may be better advised to be on half-hourly metering.  There are many different sources and opportunities to improve the current position.  They can provide an “energy audit” of your premises which will identify the usage and will also uncover where there are the possibilities of savings.

When it comes down to it there are many different alternatives for both the business user and the residential consumer.  Every single person should be making their contribution towards saving the energy which is available.  It has only been available for one hundred years and look at the distance which has been travelled in that short period of time.  We won’t be here to know what is happening after another hundred years – however our great grandchildren may still be around.  It would be interesting to know what they would think of our current efforts to save our beautiful country.

Regardless of what might happen in the future, the present is what everyone needs to consider and we must all do our small part in the reduction of energy consumption.