1. Energy Newsletter / March 2012
Page 1 of 2
Welcome to Energy & Carbon
Management’s Newsletter
MARKET BRIEF
ANNUAL REVIEW
Just over a year on from the Fukishima Nuclear plant disaster and Germany’s
subsequent reaction which dramatically increased both electricity and gas
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prices in the space of a few days, we can now look back and see where
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prices in the market are today compared to where they were then.
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Electricity (£ MW) £56.725 £51.725
After the initial reactions to the above and price availability returning to the
levels experienced prior to those occurrences, we are currently seeing prices Gas (ppTh) 66.750p 67.925p
generally in an upward trend and comparable to where they were directly
Oil ($ Brl) $102.33 $105.61
after this time a year ago.
ELECTRICITY GAS OIL
Overall sentiment in the energy markets is that now might be the right
time to commit to the longer term contracts with many of the price drivers
–8.81% 1.76% 3.21%
anticipated to increase energy prices further this year, notably Oil. Despite
the global economic woes, 2011 was one of the strongest years for oil and
the expected growth rates this year and next in the US, India and China all
point to higher prices in 2012. Despite the generally warm winter, all experts
have been taken by surprise by the sustained prices since mid-january. Add Prices compared
to this the demand, on the assumption that the UK and Europe will avoid to this time last year.
a double-dip recession, growth / recovery elsewhere should lead to an
increase in demand and hence bullish influence on wholesale prices for 2012
and beyond.
MONTHLY REVIEW
ANNUAL REVIEW
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The annual review shows electricity positioned nearly 9% below where it was /0
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at the same time last year. Gas and Oil in comparison are very marginally
above the levels they were last year at 1.76% and 3.21% respectively. Electricity (£ MW) £47.975 £51.225
Gas (ppTh) 63.625p 67.925p
MONTHLY REVIEW
Month on month since our last report the electricity, gas and oil markets have Oil ($ Brl) $103.24 $ 105.61
all continued the overall current up trend despite the recent signs of possible
softening on all 3 markets near-term prices. ELECTRICITY GAS OIL
For the second month in succession the monthly prices show Electricity, Gas
6.77% 6.33% 2.24%
and Oil all recording increases in comparison to where they were a month
ago, with the 3 commodities moving 6.77%, 6.33% and 2.24% respectively.
Gas demand in the UK has remained below the seasonal norms due to the Prices compared
TO this time last month.
warm UK temperatures, with weather forecasts not predicting a cold snap,
the strength of supply is anticipated to remain strong until at least the end of
the month.
We know energy. utility management electricity gas water
Telephone 01293 651218 Email contact@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 / March 2012
Page 2 of 2
Currently adding bullish sentiment to the market energy prices “So today I can confirm our intention to work with the private
are the on-going outage at the Hinkley Point B-8 nuclear unit, sector to deliver the new plants that companies would like to
coupled with the unexpected loss of the Karsto Processing build between now and 2030.
Plant in Norway which in turn has led to the volume of gas
supply through the Langeled Pipeline decreasing. The only “And we will continue investing in nuclear decommissioning,
comfort coming from the current low demand meaning and assess whether there is a commercially viable proposition
disruptions to supply have not been fully appreciated. for turning nuclear waste into fuel for the next generation of
reactors.
OTHER MARKET NEWS
Please read below extracts of the Prime Minister, David “Our electricity market reforms will allow the private sector to
Cameron’s recent speech on the national infrastructure invest in Britain with confidence.
relating to Energy, he delivered at the Institute of Civil
Engineering. “And renewable energy is the final component in a balanced
energy mix. Our focus here will be on offshore wind, for hard-
“The next area where we are planning bold transformation is headed reasons.
energy.
“It is secure, generated at home rather than imported.
“We need to find diverse, secure sources of energy that can And it’s one of the world’s fastest growing energy sources,
meet demand, keep prices stable and cut the impact of carbon which means substantial economic opportunities.
on the planet.
“I believe we are well-placed to become a world leader in
“But this is the problem we inherited. offshore wind power – and this Government is doing all it can to
make sure that happens...”
“We’re powering our country through an out-of-date, inefficient
grid and ageing, polluting power stations. We need to replace SPOTLIGHT ON ENERGY & CARBON
coal plants, invest in modern gas power and affordable MANAGEMENT LIMITED
renewable energy. We have further strengthened our Client Management Team
with the additions of Rowan Sandford and Rebecca Martin-
“Gas power will continue to be absolutely vital for our electricity Mayo. I’m sure they will introduce themselves to their clients
system – and we will work with industry to develop a new gas imminently if they have not done so already.
generation strategy that draws in investment and secures
electricity supply.
“Today, nuclear energy forms the backbone of our low-carbon
QUESTIONS? CONTACT US TODAY
generation fleet but the nine plants still left in service in Britain
are reaching the end of their life. I’m convinced that we need to Telephone Fax
press ahead with their replacement – but that involves three big 01293 651218 01293 512030
challenges.
Email
“One – getting the price right, without state subsidy. info@energyandcarbonmanagement.com
“Two – getting plants built on time. Website
www.energyandcarbonmanagement.com
“Three – making sure we maximise the economic benefits to
the UK in terms of skills, jobs and manufacturing.
We know energy. utility management electricity gas water
Telephone 01293 651218 Email contact@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