Professional Energy Purchasing

Market Update

Power and gas prices have increased sharply over the weekend, with prices of a 1 year contract starting in November going up by £3.40/MWh and 1.422 p/therm respectively.

The increases are caused by the following factors:

· Conservative Party Conference: The value of the pound has fallen below US$1.29/£ as a result of the announcement by Prime Minister Theresa May that Article 50, the clause enabling the UK to begin negotiations leave the European Union, will be invoked no later than the end of March 2017. As a result, it costs more to import energy into the country.

· Gas shipment delay: A tanker of LNG (liquefied natural gas) bound for the UK has been unexpectedly delayed in Egypt, lowering our overall gas supply.

Energy Efficiency & Procurement Consultants