1. Energy Newsletter / September 2012
Welcome to Energy & Carbon Page 1 of 2
Management’s Newsletter
MARKET IN BRIEF
The bears have taken control of the UK Electricity and Gas Markets. ANNUAL REVIEW
Prompt losses occurred off the back of low demand, coupled with a
healthy power margin and gas storage facilities operating at near to full
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capacity giving confidence to UK supply.
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Despite the current cooler temperature, ongoing North Sea Gas Electricity (£ MW) £55.175 £48.075
maintenance and low LNG berthing, the market price has been bearish Gas (ppTh) 68.70p 61.95p
with the Global downward pressure on Oil price continuing to be the key
driver of the Electricity and Gas Markets. Oil ($ Brl) $85.20 $89.98
ELECTRICITY GAS OIL
Oil price is down over growing concerns that the European debt crisis -12.86% -9.83% 5.61%
will worsen and derail the global economy.
Greece is back in the headlines with an IMF report not likely to be out
prior to the US elections. A Spanish 2013 budget presentation is due on
the 27th September which should give further direction to the market.
Prices compared
ANNUAL REVIEW to this time last year
The annual comparison shows Electricity and Gas still recording sizable
year on year reductions although not as great as last month due to the
market price taking a fall during August / September 2011. MONTHLY REVIEW
Electricity and Gas prices have fallen nearly 13% and 10% respectively in
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the last year, and although Oil is showing a significant monthly decrease
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it is still up in the annual comparison 5.61%.
Electricity (£ MW) £49.65 £48.075
MONTHLY REVIEW Gas (ppTh) 63.925p 61.95p
In the month-on-month comparison all 3 commodities have reversed last
Oil ($ Brl) $ 95.47 $89.98
months increases with all recording a downward movement at the end of
ELECTRICITY GAS OIL
September. The biggest movement was to the price of Oil at 5.75%, with
Electricity and Gas both decreasing just over 3%. -3.17% -3.09% -5.75%
Oil price movement can be in part attributed to Saudi Arabia increasing
its current production to a 30 year high.
The short term view could be for further price decreases due in part to Prices compared
current gas flow to the UK being very healthy, the WSI (Weather Services TO this time last month
International) forecasting warmer than seasonal temperatures for the
final quarter of this year and the current pressure from OPEC members
to push the cost of a Barrel of Oil down further.
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 / September 2012
Page 2 of 2
OTHER MARKET NEWS World-Leading tidal energy system achieves
5GWh milestone
EDF shrugs off extra nuclear cost accusation SeaGen, the first commercial-scale tidal stream energy
as “speculation” system has just achieved a new milestone of 5 gigawatt-
EDF has shrugged off accusations from rival supplier SSE hours (GWh) of tidal power generation since starting
that the cost of nuclear power could add extra cost to its operation at Strangford Lough in North Ireland. That is
customer’s bills. equivalent to the annual power consumption of 1,500
British households. The Siemens-owned system is one of
EDF is planning to build several new nuclear reactors in the largest tidal stream power projects today.
the UK, depending on the strike price – or amount the
government gives suppliers for generating low carbon This latest milestone, adding an additional 2GWh of power
energy, which will be set in the new Energy Bill due out this since January this year, is an exciting development for
Autumn. this proven technology, whose potential for commercial
deployment as part of the future energy mix is now
At present the strike price applicable to new nuclear recognised. Global carbon reduction commitments are
is subject to discussions with the Government. EDF increasing demand for reliable marine current power.
commented “when a figure is published, it will be open
and transparent for all to see. We are confident that any
agreement will demonstrate the competitiveness of new
nuclear and will fair for consumers. It is in the interest of
both the Government and EDF to ensure this is the case.”
Fukushima-style tsunamis threaten 23 other
nuclear sites QUESTIONS?
Tsunamis and natural disasters like the one which CONTACT US TODAY
sparked a meltdown at Fukushima and evacuation of the
surrounding areas could threaten 23 other nuclear sites Telephone
around the world, according to research published the 01293 651218
Natural Hazards journal.
Fax
Noting the “clustering” of threatened sites in South and 01293 512030
South-East Asia, they want that funding is crucial to look
at the problem. They have identified four areas for urgent Email
policy attention, including the need for funding to translate info@energyandcarbonmanagement.com
the scientific risk assessment into effective policy.
Website
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