Monthly Archives: May 2020

April Market Snapshot

Movements within the wholesale energy market can have a significant impact on the price a business will pay for their electricity and gas. The effective unit rate a business pays, includes the commodity cost (the cost of the energy that is consumed) and the third party charges which include but are not limited to Climate Change Levy (CCL), Renewables Obligation (RO), Feed in Tariffs (FiT), plus other transportation, and maintenance costs. The commodity costs account for circa 45% of an electricity bill and 65% of a gas bill. For further details regarding effective unit rates, please get in touch.

UK Electricity prices continue to fall during lockdown but begin to show signs of stability.

The combination of coronavirus shutdowns and low gas prices continue to drive electricity prices downwards, but UK wholesale electricity has gained some stability because of the French Nuclear production being capped combined with low wind generation in Germany. The result is a marginal 1% decrease for wholesale electricity for April.

Further mild weather and an absence of demand push UK gas prices to record lows.

UK gas prices continue to fall by circa 20% as mild weather and the UK lockdown lowers the possibility of any demand. The downward trajectory is compounded by further decreases in oil prices, a good generation from UK wind and a healthy storage of gas in the UK.

Oil prices show signs of recovery despite a plunge in value in late April.

Following sharp drops in March and record negative World Trade Index oil prices affecting the United States, Brent Oil has managed to rebound. This is partly due to countries reaching an agreement to disengage from current price wars following OPEC (Organisation of the Petroleum Exporting Countries) announcement of a decrease in production.

But with the lack of demand from aviation because of Coronavirus, expectations for a resurgence in price is low. Despite the rebound the late plunge hold prices negative with a 1% decrease.

Unlike other commodities, carbon records a steady increase in prices.

Following a momentous drop of approx. 30% in March, carbon prices began to climb at the start of the April following signs that the coronavirus outbreak was beginning to ease in Italy, Spain and Germany.

However, as the month went on this upward trend was not as significant and prices remained volatile. The trend was hampered by the reduction of French nuclear generation which reduced the amount of green energy available in the UK. This increased the demand for more carbon certificates and a subsequent hike of 14% in the cost of carbon over the month of April.

On the horizon:

A blustery April has led to good wind generation which is expected to drop over coming months and will affect the European price of electricity.

The impact of Coronavirus is beginning to show on economic data adding fears of a global economic slowdown which will continue to impact on the price of commodities but especially oil especially with the non-appearance of any air travel.

A message from GET Solutions CEO

Dear Valued Customer,

I hope you are keeping safe and well.

The world has been facing extreme global challenges over the past few months and we are all currently awaiting direction from Government as to when things will return to normality, or indeed clarification of what normality will look like.

Whilst I cannot confirm how and when this will happen,  I can assure you that we at GET have continued to work through these difficult times to look at how we can play our part in helping businesses through and beyond this crisis.

GET are currently providing critical power at a 25% discount from grid prices to the Holiday Inn chain which is housing key workers under the Governments COVID-19 initiative to support frontline workers. This is saving tens of thousands of pounds per site at this fragile time.

The Energy Revolution - CHPvsGRID

Grid power vs G-GEN™ generated power for one hotel providing accommodation for key workers

We can provide power and heat through our highly efficient G-GEN™ engines with zero capital investment. GET will conduct a free appraisal and detail real savings which are available immediately.

This is a great way to reduce current and future energy costs and the time to jump on board is now.

We look forward to supporting a more sustainable and cost-effective energy future for all of our customers.

Best Wishes

Alan Dodd
GET Solutions UK

Click here to take a G-GEN™ virtual tour

If you would like to find out more about The Energy Revolution ™ and how it can help your organisation please contact, or telephone 024 7630 8830.