Utilities Market Knowhow!
Since our Market Knowhow Report last month, Gas and Electricity Wholesale prices show little change.
Global politics and economics continue to provide volatility for Oil. The building tension between the US and Iran as well as OPEC production cuts, are adding upward pressure. High US Oil stocks and the trade war between the US and China reduce future demand projections and the price.
There has been a reduction in Gas storage levels due to an increase in demand with lower temperatures, fewer LNG deliveries and some supply issues.
As forecast, Wind’s contribution to generation in June is up from 11% in May to 15%, although this is far below previous month’s figures of 21%. Gas is the main source of generation and can be called on to meet the shortages in other areas. Our new Electricity Interconnector, NEMO, has supplied close to 3%.
The Met Office forecast is for warm unsettled weather over the next couple of weeks. This should reduce heating demand and allow Gas storage levels and Wind generation to increase.
Brexit’s impact on prices, is the fall in the £ and increased Import costs. Potential industry concerns have likely already been factored in.
Should you require further information, contact your lpm Estates Manager
Life property Management work closely with utilities broker Indigo Swan to bring the best energy rates to their clients. Indigo Swan's Market Knowhow is a regular, comprehensive report on the position of the Utilities Market.
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