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.
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Optima Energy Management
Griffin House
Broughton
Skipton
North Yorkshire
BD23 3AN
tel: +44 (0) 1756 702 488
fax: +44 (0) 1756 702 489
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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
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