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Tough financial forces plus lousy summer
weather appear to be determined to test and take
charge of the wholesale power supply market.
Prices tumbled throughout the center of June to hot lows. Annual gas costs are now 15% lower
than the same time last year, whilst yearly force costs fell to a two-year low and are 22% down
year-on-year.

Falling power costs dragged annual spark spreads down 7% to £3.4/MWh, plus even
which reliable stalwart coal is having a difficult time of details, with slipping costs 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 inside the
Eurozone countries hasn't helped. Greece lurches from crisis to crisis plus even the election of
the unique government is doing little to allay fears about its long-term future. But it's slowing
financial growth inside the US plus China which has certainly forced international energy
markets downwards. Brent Tycoon Energy Crude Oil tumbled to $97.6/bl, its lowest level
because January 2011, plus annual API coal dropped to a modern 20-month low of $95.4/t.

However, all of the is good news for customers. While we will be lost out on that 'BBQ summer'
the forecasters promised you, both domestic and commercial end-users have enjoyed energy
costs drop inside real terms. A fall in inflation has additionally assisted to stabilise the retail
market, yet the big difference has been at the pumps, where motorists have finally started to
see the numbers found on the forecourts going down rather of up. This, combined with lower
electricity and gas bills, has given the British economy a short respite, during that it has a
chance to drive up production and keep the fragile heart of UK PLC beating for a while longer.

Ironically, it's been the biomass market which has held the fort. Despite biomass contracts
dropping, with costs for 2013 down 1% to £88.5/t, costs are nevertheless about 6% high
than this time last year. They've recovered from their four-year low and are at their highest level
for five months. This boost has been helped in no little measure with the approval of the plans
for a 40MW staw-fuelled biomass plant inside Snetterton, Norfolk, that have finally been
provided 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 plus storm after storm has
resulted inside a rise inside UK gas demand. Supply peaked at 223.1mcm on 11th June, inside
the center of the bad weather. Industry watchers believe that the unseasonably bad weather
has encouraged various folks to do something they wouldn't normally do in June - they turned
the heating up. The result was which although the national system decreased 0.1%, the
territorial program climbed 2.2%. To date, summer demand (calculated from April 1st) was down
7.8% on the national system however up a staggering 31.1% on the territorial system,
compared to the same time last year.
What this indicates is that whilst gas demand for energy generation is down year-on-year,
usage by households plus little businesses has risen. This signifies that gas usage is acting
because a barometer for the productiveness of the UK economy plus whilst the big consumers
may be struggling, homes plus businesses are continuing to ride out the worst of the financial
storm, placing a more positive face on what has been a difficult limited months.

How prices may fare inside the upcoming few weeks might depend on three elements - the
resolution (or otherwise) of the Eurozone crisis, and the financial condition of the US plus China.
If they commence to wobble we could see costs commence to climb back up again.

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784996 oil drilling oil and gas

  • 1. Tough financial forces plus lousy summer weather appear to be determined to test and take charge of the wholesale power supply market. Prices tumbled throughout the center of June to hot lows. Annual gas costs are now 15% lower than the same time last year, whilst yearly force costs fell to a two-year low and are 22% down year-on-year. Falling power costs dragged annual spark spreads down 7% to £3.4/MWh, plus even which reliable stalwart coal is having a difficult time of details, with slipping costs 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 inside the Eurozone countries hasn't helped. Greece lurches from crisis to crisis plus even the election of the unique government is doing little to allay fears about its long-term future. But it's slowing financial growth inside the US plus China which has certainly forced international energy markets downwards. Brent Tycoon Energy Crude Oil tumbled to $97.6/bl, its lowest level because January 2011, plus annual API coal dropped to a modern 20-month low of $95.4/t. However, all of the is good news for customers. While we will be lost out on that 'BBQ summer' the forecasters promised you, both domestic and commercial end-users have enjoyed energy costs drop inside real terms. A fall in inflation has additionally assisted to stabilise the retail market, yet the big difference has been at the pumps, where motorists have finally started to see the numbers found on the forecourts going down rather of up. This, combined with lower electricity and gas bills, has given the British economy a short respite, during that it has a chance to drive up production and keep the fragile heart of UK PLC beating for a while longer. Ironically, it's been the biomass market which has held the fort. Despite biomass contracts dropping, with costs for 2013 down 1% to £88.5/t, costs are nevertheless about 6% high than this time last year. They've recovered from their four-year low and are at their highest level for five months. This boost has been helped in no little measure with the approval of the plans for a 40MW staw-fuelled biomass plant inside Snetterton, Norfolk, that have finally been provided 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 plus storm after storm has resulted inside a rise inside UK gas demand. Supply peaked at 223.1mcm on 11th June, inside the center of the bad weather. Industry watchers believe that the unseasonably bad weather has encouraged various folks to do something they wouldn't normally do in June - they turned the heating up. The result was which although the national system decreased 0.1%, the territorial program climbed 2.2%. To date, summer demand (calculated from April 1st) was down 7.8% on the national system however up a staggering 31.1% on the territorial system, compared to the same time last year.
  • 2. What this indicates is that whilst gas demand for energy generation is down year-on-year, usage by households plus little businesses has risen. This signifies that gas usage is acting because a barometer for the productiveness of the UK economy plus whilst the big consumers may be struggling, homes plus businesses are continuing to ride out the worst of the financial storm, placing a more positive face on what has been a difficult limited months. How prices may fare inside the upcoming few weeks might depend on three elements - the resolution (or otherwise) of the Eurozone crisis, and the financial condition of the US plus China. If they commence to wobble we could see costs commence to climb back up again.