February 4, 2010 3:09 pm
Wholesale energy prices have continued to fall over recent weeks, offering customers with 2010 renewals additional opportunities to lock in their new contract at the lowest prices seen in over two years.
Even if your energy contracts are not due for renewal until later this year, it is still worth putting a framework in place that allows you to make purchasing decisions now should prices move up.
As well as purchasing gas and electricity on a fixed or flexible basis, we also provide the following tailored services:
We offer complete transparency in our charges.
Market Overview – Electricity
Weather sensitivities have had a strong influence on power prices over the last month with April ‘10 Annual veering between £39–£41/MWh and October ‘10 trading slightly higher at £40.5–£42/MWh. Despite the cold snap experienced, supply has remained comfortable which has helped ease pressure on prices. The long term outlook has been influenced by the oil and coal markets, both of which have softened considerably, leading to downward movement in power prices.
However, with forecasts of another drop in temperatures in February, both short and long term prices may come under renewed pressure, as fears escalate over the ability of gas storage facilities in the UK to continue to provide adequate supplies.
Market Overview – Gas
With the cold snap taking many by surprise in January, a drop in temperatures brought with it an increase in demand for gas, providing a boost to gas and power prices. The National Grid was forced to issue four Gas Balancing Alerts during this period and a number of industrial customers on interruptible gas contracts were forced to switch to back-up energy supplies as they saw their gas supplies cut amid record national demand.
In addition, record demand for gas across Europe, coupled with supply glitches in Norway, where a large proportion of UK gas now comes from, added upward pressure to energy prices. Whilst falling oil markets have relieved pressure on gas markets, a further cold snap across Europe could cause additional infrastructure issues in Norway, leading to tightness in the market and the increasing probability of price hikes. Note: Pricing information sourced via Spectron
What To Do Next
Call us on 0121 222 5622 to speak to one of our professional, local Optima Service team.
Our friendly team will provide an overview of your current gas and electricity supplies and offer a FREE, NO OBLIGATION proposal to identify potential financial savings.
December 23, 2009 10:24 pm
Paul Stott – Operations Manager – BSc (Hons)
Paul has extensive experience in setting up and running teams to effectively provide a wide range of quality services covering most aspects of utility management. With his vast experience in the energy market, Paul has allied the Optima Services team’s considerable experience in the energy management field to the powerful features of the Optima software, resulting in cost-effective solutions to match customers’ exact requirements in energy procurement, invoice validation, tenant billing, energy management reporting, financial forecasting, budget tracking and accruals and metering solutions.
James Miller – Bureau Manager BSc (Hons)
James’ experience is based on delivering a wide range of specialist energy procurement and bureau services to organisations seeking to outsource some or all of their energy management functions.
Optima’s customers benefit from his wealth of experience in energy procurement and management services, on both the supply and the energy buyer sides of the equation. This unique insight makes the service a natural complement to the day-to-day use of Optima Energy software, whereby customers benefit from the value of the Optima Services team to provide accurate, secure and efficient management of energy data.
Gemma Black – ISBA Account Manager – BA (Hons)
Having worked her way up from Renewals Administrator to Broker Sales Manager at an independent energy supplier for 5 years, and since 2008, acted as Senior Account Manager at a successful energy consultancy managing 5 of the 8 major accounts, Gemma brings to the Optima service team a considerable wealth of experience and skills in portfolio management, invoice validation and query resolution involving all utilities including electricity, gas and water.
Gemma has vast experience using the Optima software to obtain the best energy solutions for schools within the Independent Schools Bursars Association (ISBA), as she used Optima software in her previous employment as a tool to provide ISBA schools with competitive energy proposals. Through this connection Gemma worked closely with Paul Stott, Optima Operations Manager, and has been the ISBA Account Manager for Optima since April 2009.
Steve Wright, Managing Director, says: “We all warmly welcome Gemma to Optima Energy Management. In fact, Gemma previously worked in the energy market using Optima software in previous employments, so we were all the more delighted when she decided to join our team.
With her impressive track record, Gemma will provide ISBA with further valuable support to enable us to continue to provide best value.”
Mike Crutchley – Sales Manager
Following a solid grounding of more than a decade in Field Sales and Consultancy, Mike brings vast experience and knowledge of the energy industry having previously worked for a number of large energy consultancies in a range of positions including Sales Manager and Seminar Speaker.
“Optima Energy Management is a dynamic and growing company with outstanding energy software products and services that provide tremendous value. The ability to work with a team that is focused on delivering maximum energy savings to its customers through the powerful Optima Energy Management software is a very exciting endeavour.” says Mike. “I look forward to helping Optima Energy Management become an even bigger presence in the UK as we have already received tremendous support from clients and prospects alike.”
Zaman Khan – Service Data Analyst – BSc (Hons)
For over 2 years, Zaman has been Optima’s Service Data Analyst. In his role, Zaman focuses on promoting a performance culture based on accurate data, driving through software innovation and superior data analysis at the heart of Optima.
Zaman joined Optima with extensive data manipulation experience within the Public Sector, having worked within a number of IT projects at the Birmingham City Council, DCA (Department of Constitutional Affairs) and HMCS (Her Majesty’s Courts Service). His position strengthens Optima’s value proposition as we drive to expand our energy management services in supporting the public sector.
The position consolidates Optima’s leading position in delivering continuously improving services to our clients and underlines our commitment to working in partnership with both the private and public sectors to provide energy management services which fully provide reductions in energy consumption and costs and increase efficiency and profit.
Zaman explains: “I am proud that we are developing new and innovative services at a time when organisations are experiencing the toughest of economic times. I believe that the Optima service team has a track record in delivering energy management solutions that identify substantial savings and reduce energy consumption. Furthermore, we will continue to do so as we uniquely position ourselves to help organisations better meet the Carbon Reduction Commitment and eliminate energy waste altogether.”
Caroline Bellingham – Head of Procurement – BA (Hons)
Taking on the role of Head of Procurement, Caroline brings more than 10 years’ experience within the energy industry to Optima. Prior to joining Optima Energy Management, Caroline worked as Operations Manager for a large energy consultancy, managing a team of Account Managers. She was also responsible for liasing with key clients and managing the relationship with energy suppliers.
“Caroline has a proven track record of delivering quality service to end users with the energy industry, and has a real knowledge when it comes to the requirements of energy users and energy suppliers. With her credentials, Caroline will indeed bring valuable experience to ensure that Optima Energy Management continues to deliver first-class services to our customers and excellent working relationships with the energy suppliers.” says Steve Wright, Managing Director for Optima Energy Management.
December 23, 2009 9:33 pm
You will find Optima Energy Management at the following upcoming energy events:
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December 23, 2009 9:07 pm
“Appleford School has been working with Optima Energy Management for the last 3 years to reduce the costs of gas and electricity on our two separate sites. As the Bursar, Finance and Personnel Manager of a small organisation I do not really have the time and 
knowledge to effectively manage our utilities purchasing, by joining the ISBA (Independent School Bursars Association) purchasing consortium run by Optima Energy Management we have made a 15% reduction in our costs in year one and year-on-year savings of 3-5%. More importantly, Optima Energy Management acted as the interface with British Gas when some major mis-billing occurred and they helped to recover some £10k. I am very happy to recommend Optima Energy Management for their hands on management style and access to lower gas and electricity prices. Optima Energy Management have also assisted in more effective cost management by ensuring that we have monthly billing which now enables me to monitor our costs.”
Mr. Clive L Gutteridge
Bursar, Finance and Personnel Manager
Appleford School
December 9, 2009 1:27 pm
Wholesale energy prices are now at their lowest levels since October 2007. Hence, now is the time to look at your next energy contract(s).
Even if your energy contracts are not due for renewal until next year, it is still worth putting a framework in place that allows you to make purchasing decisions now should prices move up.
As well as purchasing gas and electricity on a fixed or flexible basis, we also provide the following tailored services:
We are completely transparent on what we charge, so call our experienced, professional advisors for a FREE, NO OBLIGATION consultation on 0121 222 5617.
Market Overview – ELECTRICITY
With forecasters predicting a sharp drop in temperatures in the run-up to Christmas, short-term power prices have seen upward movement, which has also put pressure on forward periods.
In addition to forecasts of colder temperatures, forward prices have also been pushed higher by further gains in the price of EUAs (emissions allowances which generators factor into power costs) and a rebound in gas prices.
April Annual ‘10 prices are currently hovering around the £40/MWh mark, whilst October ‘10 Annual prices are steady around £42/MWh.
With supply margins looking comfortable for winter, Day Ahead prices look unlikely to fall below current levels of £32/MWh, with this figure reportedly being close to the marginal cost of generation.
Neither coal or oil prices are currently having much impact on the power market, with oil having dropped to a two-month low, falling below $70/barrel.
Note: information sourced via Spectron
Market Overview – GAS
After the warmest November in fifteen years saw prices on a downward spiral for much of the month, forecasts of a cold spell saw a sharp upturn in the market. Although gas prices are traditionally indexed to oil prices, recent weeks have seen gas being far less influenced by the oil market.
Increasing US gas (Henry Hub) prices, currently higher than the UK for Summer ‘10, have added upward pressure to the market in anticipation that the UK may be in competition for future LNG cargoes.
The increase in short-term prices, in anticipation of the drop in temperatures, has also impacted on the forward curve, which has also been affected by lower than expected imports from Norway. With Norwegian operators able to command higher prices on the continent than in the UK, imports have been diverted elsewhere.
April Annual ‘10 and October Annual ‘10 prices are currently trading around the 38p/therm and 44p/therm mark respectively. Note: information sourced via Spectron
What To Do Next?
For further information, just call our experienced, professional advisors for a FREE, NO OBLIGATION consultation on 0121 222 5622.
December 9, 2009 12:03 pm
With the deadline for CRC fast approaching many organisations are already taking action to mitigate its impact and are looking forward to the benefits of improving their performance. Knowing how to monitor energy use is the key first step in meeting this crucial piece of legislation.
Participating organisations will need to purchase CO2 emission allowances equal to their annual emissions, thus the more CO2 an organisation emits the more allowances have to be purchased, giving a direct incentive to reduce emissions.
Administered by the Environment Agency, the scheme is revenue neutral, with all the money collected through the allowances being recycled back to participating organisations according to their performance.
An annual performance league table ranks participants based on energy efficiency performance, consequently the better an organisation performs in reducing emissions the higher it will appear. The league position affects how much of the revenue each organisation receives.
CRC will be mandatory for any organisation that has at least one electricity meter settled on the half-hourly market. This is likely to affect approximately 20,000 private and public sector organisations. The majority of these will only be required to make an information disclosure providing details of their electricity usage. However, organisations will be required to fully participate if they have at least one half-hourly meter settled on the half-hourly market and an annual consumption through half-hourly meters of more than 6,000 MWh during the Qualification Year January 2008 to December 2008.
Whilst qualification is based on electricity consumption, participating organisations will need to monitor their emissions from all sources (electricity, gas and other fuels) apart from transportation. The first compliance year of the scheme runs from April 2010 to March 2011 and this is also the footprint year. Participants need to maintain a comprehensive and accurate record of all their CO2 emissions, and this will be the basis for submitting a footprint report to the administrator of how much CO2 has been emitted and how many allowances per tonnes of CO2 need to be purchased. The footprint report will need to be submitted by 29 July 2011.
In subsequent Compliance Years participating organisations must purchase allowances for each tonne of CO2 they emit, based on expected energy use, and monitor their usage. After each compliance year’s submissions are received, a league table will be published showing each organisation’s performance. To make this fair, performance is normalised using three different metrics:
· Absolute metric, which reflects the absolute change in an organisation’s CRC emissions
· Early action metric, which reflects any energy saving measures implemented before the start of CRC. (This includes installation of AMR (Automatic Meter Reading) or achieving the Carbon Trust Standard or equivalent scheme, each worth a weighting of 50% of emissions in the first year).
· Growth Metric, which reflects that an organisation might have increased its CO2 emissions due to expansion, but has done so in an energy efficient way
The early action metric for AMR is limited to metering installed voluntarily before 31st March 2011, after which time the percentage of AMR meters is then frozen.
In response to lobbying, a recent change in the legislation means that the relative weighting of the early action metric in the overall performance score will be reduced more gradually to better recognise early action taken, from 100% in the first year, 40% in the second year and 20% in the third year.
The benefits of AMR have long been championed, which as part of an Automatic Monitoring & Targeting system is widely accepted to deliver savings of 5% of energy consumption. So for earlier adopters of AMR, there is a double incentive to invest to see a faster return on investment.
One of the key requirements of CRC is accuracy of data and keeping suitable records for audits which will be carried out on a sample of around 20% of participants each year. The requirement to maintain an accurate database of energy consumption and CO2 emissions is essential.
In order to comply with audit requirements and make use of the AMR data, there is a compelling argument to store this data in a secure database. This not only provides security and maintains the quality of the data but opens up a range of tools available for analysing performance and realising the value of the data to identify savings by understanding where and how energy is used.
Setting targets and benchmarking Key Performance Indicators (KPI’s) should be a key component of every organisation’s energy management strategy. With the advent of CRC, it becomes even more attractive with the added benefit of the early action metric providing even greater value.
The preparations for the CRC Energy Efficiency Scheme and the ongoing administration places the emphasis on every organisation to monitor and manage their energy and carbon emissions in more detail than ever before, and in a manner that is fully auditable to ensure compliance. Some organisations are already advanced in their preparations for the CRC Energy Efficiency Scheme, with AMR and software systems in place to allow full reporting for CRC and Carbon Footprinting, but these are currently in the minority.
For further information and a FREE, NO OBLIGATION consultation, please contact one of our professional, experienced advisors on 0121 222 5622.
December 7, 2009 3:28 pm
Under a UK government scheme, due to start in April 2010, thousands of organisations will have to buy CO2 allowances to cover their carbon emissions.
Do you know how this will affect your business?
The CRC Energy Efficiency Scheme is a new mandatory emissions trading scheme that aims to improve energy efficiency and reduce the amount of carbon dioxide emitted in the UK. It is central to the UK government’s strategy to achieve carbon emission reductions of 80% by 2050 (compared to 1990) and aims to reduce emissions through energy efficiency rather than renewable energy or offsetting. Participants will need to report on and buy allowances for their CO2 emissions for all energy used on site.
In the introductory phase allowances will be priced at £12/tCO2. In later phases allowances will be sold at auction at the market rate. These funds will be recycled to particpants depending on their relative performance in reducing their emissions. Good performers will receive a rebate greater than the cost of their allowances, and vice versa for under performers.
Will you be affected?
Encouraging energy efficiency by emissions trading is increasingly being pushed down to smaller individual emitters. The EU Emissions Trading Scheme (ETS) was introduced in 2005 and targets emissions from utilities and large industrials; the CRC Energy Efficiency Scheme will come into force in April 2010 and introduces carbon reduction targets to other large organisations in the public and private sector. It is likely to affect approximately 20,000 organisations. Is your business one of them?
Information packs will be sent out by November 2009, based on 2008 electricity consumption. Any organisation will have to register as a full participant in the CRC Energy Efficiency Scheme if:
Those exceeding the threshold will have to monitor, report and buy allowances for their CO2 emissions from all fuels used on site each year. Those that don’t still have to register for the scheme and show they don’t qualify in an ‘information disclosure’.
Sectors most likely to be impacted include supermarkets, retail chains, hotel and restaurant chains, large offices, small to medium industrial facilities and almost all public sector organisations.
How can we help?
Early action now will ensure you are in the best possible position to manage your performance in the scheme once it starts. Taking measures such as installing Automatic Meter Reading (AMR) and becoming accredited by the Carbon Trust Standard will ensure you rank highly in the league table that will be published and thus mitigate your future costs.
Optima Energy Management can provide extensive support and guidance to those participating in the scheme and can advise on:
Call 0121 222 5622 today for a free consultation with one of our dedicated advisors.
August 19, 2009 1:27 pm
Although wholesale energy prices were at their lowest level for 21 months only 3 weeks ago, they have since increased slightly. Hence, now is the time to look at your next energy contract(s).
Even if your energy contracts are not due for renewal until next year, it is still worth putting a framework in place that allows you to make purchasing decisions now should prices move up.
As well as purchasing gas and electricity on a fixed or flexible basis, we also provide the following tailored services:
We derive our fee by a brokerage commission which typically equates to 1% of your energy spend. We are completely transparent on what we charge.
Market Overview
Base-load prices have increased around 3% for annual October 09 contracts since our last message three weeks ago. Prices further out along the power curve have risen slightly, helped in general by stronger gas prices although trading has been very thin past the front 3 months. A 9% increase in Brent crude oil prices since close on Wednesday 22nd July 09 has also compounded these increases. Unusually, the premium between the next winder and summer contracts has eroded to less than £1/MWh. A year ago it was £10/MWh.
Prompt prices have remained around the low £30/MWh on healthy margins. The Met office predicted above seasonal temperatures during August – this has not happened meaning we are now unlikely to see price spikes as a result of increased demand from air conditioning load.
Gas: Winter 09 Cheaper than Summer 10?
Winter 09 prices are cheaper than Summer 10. Could LNG be the difference? With LNG now accounting for a large % of the UK supply increasing attention is paid to the US gas price as much of the LNG delivered to the UK is from Atlantic Basin market. US prices have dropped below UK for all future periods and this is leading to speculation of lower prices for the forthcoming winter.
Prices further along the curve are still showing a relative premium on Winter 09, now valued at almost 14p/therm above – a record level.
Day-ahead prices have been floating around 23–24p/therm despite significant variability in gas flows into the UK although demand is down around 10%.
What To Do Next
Call us on 0121 222 5617 to speak to one of our professional, local Optima Service team.
Our friendly team will provide an overview of your current gas and electricity supplies and offer a FREE, NO OBLIGATION proposal to identify potential financial savings.
July 23, 2009 10:05 am
With wholesale energy prices at their lowest level for 21 months, now is the time to look at your next energy contract(s).
Even if your energy contracts are not due for renewal until next year, it is still worth putting a framework in place that allows you to make purchasing decisions now should prices move up.
As well as purchasing gas and electricity on a fixed or flexible basis, we also provide the following tailored services:
We derive our fee by a brokerage commission which typically equates to 1% of your energy spend. We are completely transparent on what we charge.
Market Overview
During June 09 we saw energy prices continue to fall although oil prices had increased. There was a suggestion in the market that gas prices had un-coupled from oil prices and had not followed the oil curve as is the norm; though the reality is that gas prices did not fall by the same extent as oil last year and we are just seeing a return to normal. This situation has also lead to electricity prices remaining stable. Crude oil price went to over $70/Al on optimism about economic recovery, and as a result, expected fuel demand increase. However, recent data on the economic recovery did not support this optimism and crude oil price soon fell – this price fall quickly fed through into gas prices.
At the moment prices are range bound with front months very favourable. August 09 prices, in particular, was seen dipping below 20 p/therm for a short while. Near term power prices are also relatively low on plentiful supply and weak demand – prices have been fluctuating around the low £30/MWh.
We fell that now is a time to be looking at short term supplies and arranging a contract or framework for exposure further out along the curve to mitigate increases from the current low levels.
Note: Pricing information sourced via Spectron
What To Do Next
Call us on 0121 222 5617 to speak to one of our professional, local Optima Service team.
Our friendly team will provide an overview of your current gas and electricity supplies and offer a FREE, NO OBLIGATION proposal to identify potential financial savings.
July 22, 2009 5:11 pm
Optima Energy Management – a leader in energy management software and solutions since 1989 – will launch three major software relea
ses at the Energy Event ‘09. The first of these is the next-generation Optima Software package, offering key enhancements which accommodate different languages, currencies and time zones to enable pan-European and US operational flexibility.
In addition, two new modules are being launched – the Optima Carbon Footprint, which allows users to monitor and target carbon emission reductions, and the comprehensive Optima Document Management, which supports effective administration of knowledge within business.
All products will have their unique and industry-first features demonstrated at the Energy Event ‘09 in the Manxman Suite, on stand 88.
Steve Wright, Managing Director, explains: “ We are expanding rapidly into the EU and the US markets, and it is therefore appropriate that the Energy Event ‘09 is the launch-pad for our new cutting-edge energy management solutions for energy users across a range of industries, energy bureaus and consultants”.
Used by some of the largest and most advanced energy users, Optima provides customers with the full range of capabilities for automatic monitoring and targeting of energy consumption,k energy procurement, bill validation, budgeting and financial reporting. The Optima software can be used by clients on their own networks, or as an on-demand serviced accessed over the internet with all software and data hosting provided for our state-of-the art enterprise class platform.
Optima Energy Management
Griffin House
Broughton
Skipton
North Yorkshire
BD23 3AN
tel: +44 (0) 1756 702 488
fax: +44 (0) 1756 702 489
Innovation Centre
1 Devon Way
Longbridge Technology Park
Birmingham
B31 2TS
tel: +44 (0) 121 222 5617
fax: +44 (0) 121 275 6101
email: info@optimaenergy.net