1. Energy Newsletter / August 2012
Welcome to Energy & Carbon Page 1 of 2
Management’s Newsletter
MARKET IN BRIEF
The UK Electricity and Gas Market remain volatile and mildly ANNUAL REVIEW
bullish. Electricity and Gas although having moved slightly upwards
from last month are still showing a greater downward movement on
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the annual comparison than last month.
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North Sea Gas maintenance has impacted on the bullish sentiment Electricity (£ MW) £58.700 £48.850
in the market despite healthy LNG outlook and Power margin.
Gas (ppTh) 73.125p 62.70p
Brent Oil is at a 3 month high, with Coal the only commodity being Oil ($ Brl) $88.90 $95.49
bearish losing $2.5 a barrel partly due to resolution in Columbia.
ELECTRICITY GAS OIL
The bullish side in the prompt has been driven by demand and -16.78% -14.26% 7.41%
pipeline maintenance.
Economic data expected out at the end of August is anticipated
to have a bullish impact on price.
All 3 commodities are still showing a level of volatility with Winter Prices compared
’12 prices for Oil currently approaching its resistance level, to this time last year
Electricity being tested and Gas having pushed through its own
resistance mark.
MONTHLY REVIEW
On the whole UK news of late has been dominated by rising
Electricity and Gas costs. We may not see a cut in prices for
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sometime so to counteract this we all need to start working smarter
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and eliminating energy wastage to control rising costs.
Electricity (£ MW) £46.825 £48.850
ANNUAL REVIEW Gas (ppTh) 60.50p 62.70p
The annual comparison shows Electricity and Gas still recording
significant price decreases of 16.78% and 14.26% respectively. Oil ($ Brl) $ 89.78 $95.49
Bucking this trend is Oil which has turned from where it was ELECTRICITY GAS OIL
positioned last year showing an increase of 7.41%.
4.32% 3.64% 6.36%
Analysts comment that it is only a matter of time before OPEC
(Organization of the Petroleum Exporting Countries) spare capacity
become effectively exhausted, requiring higher oil prices to
restrain demand, keeping it in line with available supply. Escalating
tensions between Iran and the West and the risk to crude oil is Prices compared
TO this time last month
driving prices upwards.
We know energy. utility management electricity gas water
Telephone 01293 651218 Email info@energyandcarbonmanagement.com Website www.energyandcarbonmanagement.com
Energy and Carbon Management Limited Longley House, International Drive, Crawley, West Sussex, RH10 6AQ
© 2012 Energy and Carbon Management Limited

2. Energy Newsletter / August 2012
Page 2 of 2
MONTHLY REVIEW Confusion reigned in Europe last week partly due to the
Electricity, Gas and Oil have all shown an increase in unexpected agreement by the Eurozone leaders on a
the month-on-month comparison for the first time since plan to centralise funding of the banking debt crisis in
March, with Oil showing the most sizeable increase. return for banking union.
The current cooler temperatures and rising demand Whilst in the US confidence remains low due to little
are affecting the near price with bearish economic evidence of economic growth, unemployment, retail
sentiment relating to the Eurozone crisis continuing to sales, property prices and debt levels. Growth in China
affect far curve prices beyond winter 2012. is also slowing down.
Britain’s rising gas import bill is creating an additional
burden for many businesses, particularly those with a lot
of set energy costs (lights, ventilation, machinery etc),
and the next couple of years could see significant rises
in energy bills which could be extremely challenging for
many companies in an already difficult market
OTHER MARKET NEWS
Scottish and Southern Energy (SSE) last week became
the first supplier to announce it would be increasing
its domestic energy prices by an average of 9% from
October. History would suggest that other suppliers will
follow suit, with the prospect of similar increases likely
for commercial prices.
QUESTIONS?
SSE stressed that these so called unavoidable price CONTACT US TODAY
increases for both Electricity and Gas were due to
wholesale prices and the rising cost of transporting Telephone
energy through pipes and wires. Other contributing 01293 651218
factors they highlighted were also due to them having
pay for government schemes such as the Carbon
Emissions Reduction Target (CERT), the Warm Homes
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Discount and helping vulnerable customers. 01293 512030
SSE says that the cost of Government sponsored Email
Schemes has risen nearly a third since last year, now info@energyandcarbonmanagement.com
accounting for around 10% of a typical bill. EON
attempted to capitalise on SSE’s price rise by assuring Website
its customers it will not raise its energy bills this year. www.energyandcarbonmanagement.com
We know energy. utility management electricity gas water
Telephone 01293 651218 Email info@energyandcarbonmanagement.com Website www.energyandcarbonmanagement.com
Energy and Carbon Management Limited Longley House, International Drive, Crawley, West Sussex, RH10 6AQ
© 2012 Energy and Carbon Management Limited