Utilities Market Knowhow!
Since our Market Knowhow Report earlier this month, Gas and Electricity Wholesale prices have fallen further.
We have had mild weather and continued deliveries of LNG, but Gas storage levels have slipped to 46% full. Although lower, this still gives the industry confidence, as there will be less of a requirement to fill during the summer, when compared to last year.
Wind has provided very high levels of generation so far this month at 22% of supply, reducing the use of Gas, at a time when we have a number of Nuclear plants offline. Our new Electricity Interconnector, NEMO, has supplied a welcome 2%.
The price of Oil has risen due to supply cuts by OPEC and Russia. This is currently $67 a barrel but has reached $68. High US production levels and economic growth concerns coming from Asia, Europe and North America, are restricting the increase and the subsequent impact on linked Gas contracts.
The Met Office forecast is for unsettled weather over the next couple of weeks, but gives no indication for a large increase in energy demand.
Brexit does not seem to be having an impact on prices, potentially with any concern that was built in, being eroded by continued uncertainty as to the outcome.
For further information on energy supply please 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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