The increased demand due to the cold weather is set to remain however, as seasonal temperatures are below normal.

The gas prices have remained steady due to a weaker oil price and supply being readily available. Therefore if the cold weather continues, and demand remains high it is possible we could see an effect on prices soon.

During the cold weather, spot markets for gas were at their highest since 2008.

The day-ahead closing price on 7th February saw gas reach over 95p/therm, with electricity reaching over £66 per MWh on 8th February.

Markets have calmed since then, but continue to show a slight upward trend since January.

Oil prices remain high, partly due to tensions with Iran and uncertain weather conditions in the near future could pose a threat to supply. However at present, prices remain fairly stable albeit not quite as competitive as at the start of the year.

Average electricity prices excluding CCL fell in cash terms between Q3 2010 and Q3 2011 by
up to 3 per cent for very small and small consumers, but have risen by between 3 and 9 per cent for all
other business consumers. The inclusion of CCL increases the average price of electricity by between 2 and 5 per cent.

Average gas prices excluding CCL fell in cash terms between Q3 2010 and Q3 2011 by less than 1 per cent for very small consumers but have risen by between 8 and 21 per cent for all other business consumers. The inclusion of CCL increases the average price of gas by between 1 and 6 per cent.

The report can be found here

However whilst some say the markets will start to increase going into winter, there is the possibility the recent increase may be a short term ‘blip’ before prices remain steadily falling.

Given the vast sums of money needed to invest into the energy industry, and the increased competition from abroad for LNG and coal, it is easy to see why some find it hard to see prices falling dramatically in the longer term.

We have witnessed sudden and dramatic increases in the past (2008) and it would not be impossible for history to repeat itself.

No matter when your company’s energy agreements are due for renewal, why not speak to one of our account managers to discuss the options available to you? We’ll be happy to speak to you and provide information free of charge, simply call 0800 040 70 90.

For electricity, Summer 2012 and Winter 2012 prices fell 0.9% and 0.6% respectively. However prices for Summer 2013 to Winter 2014 increased between 0.1 and 0.5%.

Likewise with gas, mixed changes over the weekend show prices from Summer 2012 to Winter 2014 down an average of 0.3%.

We are however starting to witness much more severe weather both in the North and throughout the midlands. Supply seems to keeping up with demand, but any snow or freezing temperatures may place further stress on the system, pushing up prices.

Immediate prices (day ahead) did rise around 1% over the weekend, which isn’t considered dramatic for the day ahead market.

If you are concerned over potential future costs of energy for your business, call us on 0800 040 70 90 to discuss your requirements.

George Osborne will announce £250 million of support this week for energy intensive firms, to help with higher energy bills and boost the economy.

One part of the initiative is to assist high energy users for the Carbon price floor (a tax on fossil fuels due to be introduced in 2013). This tax could increase costs for energy intensive firms significantly.

During 2013/14 around £40 million will be set aside to compensate firms, rising to £60 million by 2014/15.

Indirect costs arising from the European Union’s carbon Emissions Trading Scheme (EU ETS) will also be offset, with payments of £12 million in 2012/13, increasing to £50 million in each of two successive fiscal years.

The discount relief on the Climate Change Levy fuel tax for firms that promise to improve their energy efficiency will also be increased to 90 percent from April 1st 2013, an improvement on the increase to 80 percent from 65 percent announced in this year’s budget.

The relief will be available only to firms that set energy efficiency targets signing up to a Climate Change Agreement (CCA), and is estimated to cost £40 million for the 2013/14 and 2014/15 fiscal years.

The new government support is projected to cut the electricity costs of high energy users, such as steel and aluminium makers plus the cement, chemicals, glass and paper industries by 5 to 10 percent.

The pence per kWh which is paid from the government for generation of electricity via Solar (PV) may be reduced from December 12th, making the payback period for such projects significantly longer, and therefore making them much less attractive for householders and businesses as a near or longer term investment.

Solar companies are worried many of the 25,000 of jobs in the industry will be lost due to the expected reduction in demand.

Due to the changes being brought in so quickly without a thorough consultation, some companies plan to take legal action against the government.

The industry may also experience a rush of householders and businesses attempting to install renewable energy equipment before the deadline, and some fear they will simply not be able to keep up with this short-term demand.

However energy prices during Winter is a concern for many businesses too. Turning the heating up, and switching lights on earlier may be a small change, but costs can soon stack up.

Parents will know far too well the challenge of making their children turn lights off when leaving a room. Business managers face a far more challenging task of making sure their staff follow energy efficient procedures involving not just lights, but heating controls, machinery and office equipment.

Monitoring is also a difficult task for business owners, as for every energy saving process carried out by one employee could be outweighed ten-fold by another inefficiency elsewhere in the business.

We would recommend any business wishing to gain more control and insight into energy efficiency to install Smart meters, which are available for both gas and electricity via CASL.

The first step into reducing energy consumption is to find out how, where and when you use it most. Without this specific data, reducing your energy consumption will be a time consuming ‘guessing game’.

If your electricity or gas agreement is also due to expire soon, don’t delay in calling us to perform a market analysis. We’ll help compare prices from all our suppliers helping you keep costs down.

Call us to discuss further on 0800 040 70 90.

Alternatively contact us here