Utilities Market Knowhow!
In the last month the continued global and domestic availability of Oil, Gas and Coal has meant that there have been further falls to the Year Ahead Wholesale Gas and Electricity prices.
OPEC and Russian oil output has continued to be high, which is holding prices below $50 barrel. USA production levels fell and the expectation is that other countries will follow in 2016. However, with the forecast of slower economic growth, any substantial impact on prices is likely to take some time.
What does this mean to me?
The Year Ahead Wholesale Price Reports show further reductions for both Gas and Electricity.
We would recommend that customers at least look at contracting now as these low prices are thought to be nearing the bottom end of what the industry can tolerate without further generation or production going offline, due to the economics of supply.
lpm, together with our utilities broker, would be happy to research development communal supply options for 12, 24 and 36 month contracts, to determine the potential benefits these current low prices might mean for you.
Should you require further information, please contact your lpm Estates Manager now.
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