Electricity, gas, and oil prices have all decreased from last year, with oil down over 20%. Near-term energy contracts are softening but prices are higher further out due to tensions in the Middle East. The UK has the most energy efficient economy of the world's 12 largest according to a new report, followed by Germany, Japan, and Italy. Centrica reported large profits from its UK residential energy supply business in the first half of 2012.

1. Energy Newsletter / July 2012
Welcome to Energy & Carbon Page 1 of 2
Management’s Newsletter
MARKET IN BRIEF
The Electricity and Gas prices look to have found a support point this ANNUAL REVIEW
month and remain virtually unchanged from last month.
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Some suppliers are reporting demand levels for energy being down 25%
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largely due to the warmer weather we are currently experiencing. Oil has
Electricity (£ MW) £55.825 £46.675
continued its downward movement contributing to Electricity and Gas not
breaking their own consecutive monthly declines of the last quarter. Gas (ppTh) 69.125p 60.10p
Oil ($ Brl) $99.59 $79.36
Whilst near term contract renewals are still softening, further out prices
ELECTRICITY GAS OIL
are subject to slight premiums due to concerns over supplies of oil due to
escalating tensions in the Middle East. -16.39% -13.05% -20.31%
ANNUAL REVIEW
The annual review shows Electricity, Gas and Oil are all showing sizeable
wholesale market price decreases from the level they were at a year ago,
at over 16, 13 and 20% respectively. Prices compared
to this time last year
At the end of 2011 analysts and notably BP chief executive Bob Dudley
forecast that Oil prices would be unlikely to fall below $90 a barrel in
2012. Currently Oil is sitting at just under $80 a barrel, with Electricity MONTHLY REVIEW
and Gas price levels also positioned near to their own perceived market
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floors. Now is an attractive time to be locking out energy contracts. 6/
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MONTHLY REVIEW Electricity (£ MW) £46.84 26
£46.675
For the fourth month in succession all three commodities have continued Gas (ppTh) 60.425p 60.10p
their respective downward trends.
Oil ($ Brl) $ 83.27 $79.36
Electricity and Gas decreases in the month-on-month comparison are ELECTRICITY GAS OIL
very marginal with Oil showing the most significant decrease at nearly 5% - 0.35% -0.54% -4.7%
partly due to falling demand in the EU, the US and China.
OTHER MARKET NEWS
Prices compared
Energy efficiency ranking of the world’s 12 major economic
TO this time last month
countries
The UK has come first in a new energy efficiency ranking of the world’s
12 major economic countries.
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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 / July 2012
Page 2 of 2
In the first international scorecard developed by The The company’s interim results for the first half of 2012
American Council for an Energy-Efficient Economy show energy supply to homes appears to have made
(ACEEE), Britain is closely followed by Germany, Japan a healthy chunk of the profits, with £345m coming from
and Italy, while the US is in 9th place. the residential energy supply and £125m for residential
services.
The 12 countries represent about 63% of global energy
consumption and 62% of global carbon emissions. Chief Executive Sam Laidlaw said: “Centrica has
performed well in the first half of 2012 despite challenging
Energy Secretary Ed Davey welcomed the new publication market conditions, although the increases in earnings
and was pleased with the results. must be placed in the context of unusually low levels of
consumption and profits in the UK in the first half of 2011.”
He said: “Making our buildings and industries more energy
efficient is a significant challenge, one that will take years
to meet; doing so cost effectively will mean drawing on
the experiences of others. This study is a fascinating
collection of best practice, setting out innovations which
can accelerate economic growth, enhance energy security
– and save our households and businesses money.”
Industry welcomes Government decision on wind,
wave and tidal to unlock growth
Renewable UK, the trade and professional body for the
wind and marine energy industries has welcomed the
QUESTIONS?
Government’s announcement on levels of financial support
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for onshore and offshore wind, and wave tidal energy,
Telephone
following the long-awaited conclusion of the Renewables
01293 651218
Obligation Banding Review.
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The additional certainty that this announcement provides
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could help the Onshore Wind sector grow to employ over
12,000 people by 2020 and add over a billion pounds to
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the UK’s economy every year.
info@energyandcarbonmanagement.com
Centrica post huge half year profits Website
Centrica made £1.45 billion in profits for the first half of www.energyandcarbonmanagement.com
the year, a 15% rise in profits on the same period last year.
This includes a 23% rise in profits at its UK business
British Gas.
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