1. Energy Newsletter / October 2012
Welcome to Energy & Carbon Page 1 of 2
Management’s Newsletter
MARKET IN BRIEF
As we have now reached October our pricing comparisons ANNUAL REVIEW
for energy are now focussing on price availability for contracts
commencing anytime between now and April 2013.
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Recently we have experienced bearishness in the UK Power, Gas
and Coal prices, with the UK near price curve remaining relatively Electricity (£ MW) £55.975 £52.60
flat with slightly further out prices attracting a premium.
Gas (ppTh) 68.65p 66.675p
Despite escalating tensions between Syria, Turkey, Israel and Iran Oil ($ Brl) $91.17 $87.37
providing support to Oil prices we have seen Oil fall to a 3-month
ELECTRICITY GAS OIL
low. The government reported that US Crude Oil production
climbed to the highest level in more than 15 years whilst fuel -6.03% -2.88% -4.17%
consumption has decreased. Economic slowdown in Asia has also
curbed fuel demand.
Middle-east tension needs to be continually observed as this
will drive future market volatility in Power Markets. Any positive
announcements regarding an EU Bailout will provide some Prices compared
bullishness and confidence to the market. to this time last year
ANNUAL REVIEW
The annual comparison for an April ’13 renewal for both Electricity and MONTHLY REVIEW
Gas are both recording decreases mirroring the price direction of last
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months year-on-year comparison at 6.03% and 2.88% respectively.
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Indifferent to last months newsletter which commented on Oil
Electricity (£ MW) £50.56 £52.60
recording an increase in the year-on-year comparison this month
Oil is showing a 4.17% drop partly due to currently healthy Gas (ppTh) 64.35p 66.675p
production and falling demand.
Oil ($ Brl) $ 91.63 $87.37
MONTHLY REVIEW ELECTRICITY GAS OIL
In the month-on-month comparison Electricity and Gas are both 4.03% 3.61% -4.65%
recording increases of around 4% when looking at the April ’13
pricing curve. Coal generation slipped with the Drax Power Station
going offline at the same time as the French Interconnector also
doing the same, placing strain on the power network.
Prices compared
Limited short-term and erratic flows of gas from Norway have TO this time last month
now retreated which has had a bearish impact on prices with Oil
recording a sizeable month-on-month decrease of 4.65% in part
due to the reasons detailed in the annual review.
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Energy and Carbon Management Limited Longley House, International Drive, Crawley, West Sussex, RH10 6AQ
© 2012 Energy and Carbon Management Limited

2. Energy Newsletter / October 2012
Page 2 of 2
OTHER MARKET NEWS not achieve the CCC target if these gas plants are built,
because they typically last 30 years. The government
UK Public favour wind turbines over shale believes this “dash for cash” will lead us out of recession.
gas wells, poll finds
More than two-thirds of people would rather have a wind Rather than listening to the fuel lobby, the government
turbine than shale gas well near their home, according to should turn its attention to Germany, now leading Europe
a new opinion poll jus published. out of recession. The peak price of electricity in Germany
is falling steadily due to the amount of photovoltaic
Asked to choose which of the two energy sources near (PV) electricity is rising exponentially, giving their industry
to their homes 67% of respondents favoured a turbine, a competitive advantage.
compared to just 11% who would support the gas
development. In Summer or Winter PV systems in Germany supply
cheap electricity with maximum power around noon,
The survey also reported that only nuclear power and when the sun is highest in line with peak demand and
coal are less popular than shale gas developments, the peak price of electricity.
showing that public opinion is against George Osborne’s
push for a new “dash for gas” as the central plank of the In the UK, an all-renewable electricity supply would be
government’s energy policy. even easier than Germany because of the monthly wind
variation and evening electricity demand match.
The polls come a critical time for the government’s
energy bill, which aims to deliver the £200bn required to
replace and develop the nation’s ageing infrastructure,
due to be published on the 5th November.
We must impose a carbon limit on new electricity
generation here and now QUESTIONS?
Investing in renewables, not gas, will allow the UK to CONTACT US TODAY
emerge from recession and meet carbon targets a report
published in the Guardian suggests. Telephone
01293 651218
Arctic Ice is melting faster than expected. Five years ago
predictions suggested it would take until 2065 to shrink to Fax
size it reached last month. 01293 512030
Drastic action in the energy sector is required to reduce
emissions to slow down the rate of global warming.
Email
info@energyandcarbonmanagement.com
Earlier this year, the UK government’s independent
climate advisor, the Climate Change Committee (CCC), Website
called for carbon footprint of UK electricity to be 50g/kWh www.energyandcarbonmanagement.com
by 2030. However, the government set a standard for
new electricity generators that is nine times higher. This is
to allow electricity generation from natural gas but we will
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