Utilities Market Knowhow!
There has been very little change over the last month in terms of the global and domestic pressures on the Year Ahead Wholesale Gas and Electricity prices, meaning they have remained stable.
This confidence is due to healthy Gas storage heading into the winter, good supplies of LNG (which are forecast to increase) no issues with generation and near capacity imports of Electricity from Europe.
The Dutch Parliament has recently called on its Government to substantially lower the Gas production from the Groningen field, due to safety reasons. This is Europe’s largest Gas field and a decision is due to be made in December, on 2016 production levels. The news has supported prices.
What does this mean for me?
The Year Ahead Wholesale price graphs illustrate that both Gas and Electricity prices have been stable for a further three months and remain very low.
For Gas, much of the reduction is being seen directly in the supply contracts we tender for our customers, whereas for Electricity the low prices are an opportunity to cancel out the increasing third party charges.
lpm, together with our utilities broker, would be happy to research developments’ 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.