The wholesale energy market has been falling now since July 2014 apart from a few blips along the way, but on the whole prices are the lowest they have been since around 2010. But does this mean you are guaranteed a saving on your next energy contract renewal?
With gas supply contracts yes, chances are we can get you between 10-15% saving on average, however, with electricity it might not be so simple. Third Party Charges (TPCs) are having a big impact on energy costs and are the main reason for rising electricity bills. For example, third party costs can now account for approximately 50% of the delivered electricity bill price compared to about 30% five years ago.
Businesses are now beginning to realise how important these elements are during the contract renewal and negotiation stage, and how each supplier breaks these costs down and present them in different guises. Some of these costs may not be recognisable and chances are you may not have seen some of them before. When you work with GET Solutions, we provide clear and transparent costing reports from each supplier, giving you the correct information to create an informed and accurate decision on choosing your next energy contract. Furthermore, we aim to deliver you a saving with our purchasing power and exclusive relationships with over 30 energy suppliers in the market place.
In April 2015, the Government introduced the Energy Market Reform (EMR). Charges like Capacity Market (CM) and Contracts for Difference (CfD) were introduced and will create a mechanism to support the generation of low carbon electricity. An investment of £110 Billion is needed by 2020 to meet environmental targets so third party costs are forecast to continue to rise over the coming years.
To find out more about Third Party Costs and how they impact your business, please get in touch with our Corporate Team on Tel. 0800 888 6020 or email firstname.lastname@example.org
Strong LNG output and imports heightened by an appreciating pound against the euro continued to support gas prices down throughout March. Supply remained reasonably high despite a number of outages at Norwegian gas fields increasing demand.
Worryingly, a deal is yet to be reached between Russia & Ukraine which remains a concern, adding upwards pressure to the gas market. More potential upside is coming from fears over Centrica’s Rough gas storage facility with a potential 30% capacity cut due to technical issues. However, the strong supply and lower oil prices due to the continued over supply has muted this impact.
The gas market continued to be the main driver behind the power market movement. The news that Rough gas storage might face capacity restrictions fed through to the power market and raised prices, however weak coal and oil prices reduced the impact.
At the beginning of the month milder temperatures and consistent wind speeds pushed up power production from renewables, pushed prices down. Mid-month saw cooler than forecasted temperatures increasing heating demand and the need for gas in power generation.
What to watch out for throughout April
In May we should hear more on the financial situation in Greece. They are currently locked in talks with creditors as they are running the risk of running out of cash and are seeking fresh financial aid.
An update on the Rough Gas Storage capacity problems is expected shortly.
Talks between Russia & Ukraine continue with the EU next month on the pricing of Russian Gas deliveries.
We will be attending the annual Facilities Management event at Birmingham’s NEC. During the fantastic 3-day event we will be showcasing our impressive portfolio of energy management and energy saving technology.
In the highly competitive facilities management industry, it is essential to reduce costs and add value to the core business of the client organisation wherever possible. Energy is a critical but necessary cost to businesses, both large and small. Through intelligent monitoring and effective procurement, Get Solutions will deliver your clients’ business energy at the most transparent and price-competitive rates on the market. An established leader in our field, we have been delivering effective energy solutions to Corporate and SME commercial clients for more than a decade.
Please visit us on Stand F4H between 24th-26th March where we would welcome the opportunity to demonstrate our services to you and how we can help you achieve substantial and enduring energy savings for your clients.