energyTEAM | marketMONITOR, monthly updates on the electricity, gas and oil markets

Oct Closing Prices: Brent Crude $65.32/Barrel: Carbon Emissions €17.80/T CO2: Coal $123.62 /Tonne

Impending legislation from 01/10/2008 that will affect you:

Energy Performance certificates are required for buildings constructed, leased or sold after this date. Display energy cetificates were due to be displayed by 1 October 2008 in public sector buildings but an extension has been agreed until the beginning of January 2009. We can ensure you are ready for this legislation. Please call us so we can help you.

MONTHLY OVERVIEW:

As we moved into October so the forward price curve moved forward with the front season being Summer '09. Electricity and gas prices have shown a good reduction going forward indicating that the main concern is still this current Winter. Oil has continued to fall along with coal and carbon prices.

Changes to Gas Transportation Charges

With effect from 1st October 2008 there will be changes in the charging structure made by the Gas Distribution Networks (GDNs). There will be an increase in the use of system capacity charges from 50% to 95% and a decrease in the system commodity charges from 50% to 5%. These changes will vary by region but most consumers should not expect to see any significant increase on their bills if at all.

ELECTRICITY ANNUAL BASELOAD

This graph is updated and published on our website every Wednesday morning visit: www.energyteam.co.uk/marketconditions.htm.

Electricity Graph

The Industry provides prices for the electricity ordered today but delivered at some time in the future. These "forward prices" alter day to day.
Electricity, because it cannot be stored, is generally priced on two separate bases - the steady load that can normally be expected (Baseload), representing a demand on the system that can be anticipated fairly accurately and the additional load (Peakload) that can arise over and above the baseload.
The chart shows the day-to-day pricing of these two elements (Base & Peak load) for forward summer & winter. It is important to note that they represent the cost of Electricity in the market (excluding transmission costs etc.) so they do not equate to the retail price of electricity. However, the chart does illustrate the trend of prices.

GAS ANNUAL BASELOAD

This graph is updated and published on our website every Wednesday morning visit: www.energyteam.co.uk/marketconditions.htm.

Gas Graph

The Industry provides prices for gas ordered today but delivered at some point in the future. These "forward prices" alter day by day.
In order to give a constant price (P) over the term of retail contract these prices are averaged on a weighted basis. This weighting can vary for each individual consumer, but a consumer with a load factor of 39% is assumed to have a standard offtake profile e.g. 12.7% of gas will be consumed January and will attract the price for that period ruling on the day the contract price (P) is prepared.
The graph represents these contract prices (P) charted on a daily basis. It is important to note that they represent the Cost of Gas in the market (excluding transportation costs etc.) so they do not equate to the retail price of gas. However, the chart does illustrate the trend of prices.

Overall % Increases

In order to provide our clients with information on how retail prices are moving we have averaged all prices received during October.
The level of increases depends on a number of factors including when the contract was negotiated, as well as when the contract starts. The following averages are therefore provided purely to give an indication of price movements:

Electricity

Clients who are renewing contracts negotiated in October 2007 are showing an average increase of 75.39%
Clients who are renewing contracts negotiated in October 2006 are showing an average increase of 83.17%

Gas

Clients who are renewing contracts negotiated in October 2007 are showing an average increase of 47.44%
Clients who are renewing contracts negotiated in October 2006 are showing an average increase of 44.1%

Disclaimer:
The information provided supplied is given without any assumption of liability and the customer accepts that we are not liable for the use of said information. We make strenuous efforts to ensure that the information in this report/graph is obtained from very reliable sources but we can't guarentee its accuracy. The views expressed here are those of the authors and not intended to provide advice or recommendations, as the customer is solely responsible for its market decisions. Owing to the volatile nature of the markets the views expressed may be subject to change without notice.