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Tough economic forces plus lousy summer
weather seem to be determined to try and take
charge of the wholesale power supply
marketplace.
Prices tumbled throughout the center of June to modern lows. Annual gas prices are today 15%
lower than the same time last year, whilst annual energy costs fell to a two-year low plus are
22% down year-on-year.

Falling power costs dragged yearly spark spreads down 7% to £3.4/MWh, plus even that
reliable stalwart coal is having a hard time of elements, with slipping prices buffering the fall of
dark spreads somewhat to a £17.9/MWh premium to spark spreads.

So what's been setting off these price crashes? Well, concerns regarding debt in the Eurozone
nations hasn't assisted. Greece lurches from crisis to crisis plus even the election of the unique
government is doing small to allay fears about its long-term future. But it's slowing economic
development in the US and China that has really pushed global power markets downwards.
Brent Ameratex Crude Oil tumbled to $97.6/bl, its lowest level because January 2011, plus
annual API coal dropped to a unique 20-month low of $95.4/t.

However, all of the is superior news for consumers. While we may be missing out on which
'BBQ summer' the forecasters promised you, both domestic plus commercial end-users have
enjoyed vitality prices drop in real terms. A fall inside inflation has also assisted to stabilise the
retail market, however, the big difference has been at the pumps, where motorists have finally
started to find the numbers on the forecourts going down rather of up. This, combined with lower
electricity and gas fees, has provided the British economy a brief respite, throughout that it has
a chance to push up production and keep the fragile heart of UK PLC beating for a while longer.

Ironically, it's been the biomass marketplace that has held the fort. Despite biomass contracts
dropping, with prices for 2013 down 1% to £88.5/t, prices are still about 6% higher than
this time last year. They've recovered from their four-year low plus are at their highest level for
five months. This boost has been assisted in no small measure with all the approval of the plans
for a 40MW staw-fuelled biomass plant inside Snetterton, Norfolk, that have finally been given
the go-ahead.

The real headline grabber throughout June plus into July has been the atrocious weather the
UK has experienced. Lower than average June temperatures and storm after storm has resulted
in a rise in UK gas demand. Supply peaked at 223.1mcm on 11th June, inside the middle of the
bad weather. Industry watchers believe which the unseasonably bad weather has encouraged
various folks to do something they wouldn't normally do inside June - they turned the heating
up. The result was that though the nationwide system decreased 0.1%, the regional program
climbed 2.2%. To date, summer demand (calculated from April 1st) was down 7.8% found on
the nationwide system however up a staggering 31.1% found on the regional program,
compared to the same time last year.

What this indicates is that whilst gas demand for power generation is down year-on-year,
consumption by households plus little companies has risen. This signifies which gas usage is
acting because a barometer for the productiveness of the UK economy plus whilst the big
consumers will be trying, homes and companies are continuing to ride out the worst of the
economic storm, putting a more positive face on what has been a difficult limited months.

How costs usually fare in the upcoming few weeks depends three items - the resolution (or
otherwise) of the Eurozone crisis, and the economic condition of the US plus China. If they
begin to wobble you could see costs start to climb back up again.

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429025 crude oil-ameratex

  • 1. Tough economic forces plus lousy summer weather seem to be determined to try and take charge of the wholesale power supply marketplace. Prices tumbled throughout the center of June to modern lows. Annual gas prices are today 15% lower than the same time last year, whilst annual energy costs fell to a two-year low plus are 22% down year-on-year. Falling power costs dragged yearly spark spreads down 7% to £3.4/MWh, plus even that reliable stalwart coal is having a hard time of elements, with slipping prices buffering the fall of dark spreads somewhat to a £17.9/MWh premium to spark spreads. So what's been setting off these price crashes? Well, concerns regarding debt in the Eurozone nations hasn't assisted. Greece lurches from crisis to crisis plus even the election of the unique government is doing small to allay fears about its long-term future. But it's slowing economic development in the US and China that has really pushed global power markets downwards. Brent Ameratex Crude Oil tumbled to $97.6/bl, its lowest level because January 2011, plus annual API coal dropped to a unique 20-month low of $95.4/t. However, all of the is superior news for consumers. While we may be missing out on which 'BBQ summer' the forecasters promised you, both domestic plus commercial end-users have enjoyed vitality prices drop in real terms. A fall inside inflation has also assisted to stabilise the retail market, however, the big difference has been at the pumps, where motorists have finally started to find the numbers on the forecourts going down rather of up. This, combined with lower electricity and gas fees, has provided the British economy a brief respite, throughout that it has a chance to push up production and keep the fragile heart of UK PLC beating for a while longer. Ironically, it's been the biomass marketplace that has held the fort. Despite biomass contracts dropping, with prices for 2013 down 1% to £88.5/t, prices are still about 6% higher than this time last year. They've recovered from their four-year low plus are at their highest level for five months. This boost has been assisted in no small measure with all the approval of the plans for a 40MW staw-fuelled biomass plant inside Snetterton, Norfolk, that have finally been given the go-ahead. The real headline grabber throughout June plus into July has been the atrocious weather the UK has experienced. Lower than average June temperatures and storm after storm has resulted in a rise in UK gas demand. Supply peaked at 223.1mcm on 11th June, inside the middle of the bad weather. Industry watchers believe which the unseasonably bad weather has encouraged various folks to do something they wouldn't normally do inside June - they turned the heating up. The result was that though the nationwide system decreased 0.1%, the regional program climbed 2.2%. To date, summer demand (calculated from April 1st) was down 7.8% found on
  • 2. the nationwide system however up a staggering 31.1% found on the regional program, compared to the same time last year. What this indicates is that whilst gas demand for power generation is down year-on-year, consumption by households plus little companies has risen. This signifies which gas usage is acting because a barometer for the productiveness of the UK economy plus whilst the big consumers will be trying, homes and companies are continuing to ride out the worst of the economic storm, putting a more positive face on what has been a difficult limited months. How costs usually fare in the upcoming few weeks depends three items - the resolution (or otherwise) of the Eurozone crisis, and the economic condition of the US plus China. If they begin to wobble you could see costs start to climb back up again.