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.
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
You are currently browsing the Optima Energy News Blog weblog archives for July, 2009.