Annual gas and power prices have continued to consolidate in the past week, finding interim support to stabilise around their mid-January lows. Whilst electricity and gas supply systems continue to largely cope with winter demand levels, several issues have led to a firming of prices, albeit by only a small degree. Colder weather forecast for the coming week has supported the prompt and near-curve. Below seasonal normal temperatures overnight lifted demand today with the cold spell expected to continue into the second week of February. The colder-than-expected outlook increased concerns over inventories at Rough, which has seen maximum output in recent weeks. Process problems at several fields in the Norwegian Continental Shelf have limited imports via Langeled, triggering occasional tightness in the system. Whilst January was a bumper month for LNG deliveries, no tankers have so far been booked for delivery in February. Power demand has been forecast close to winter highs with an unplanned outage at Heysham 1-2 cutting nuclear generation, whilst the prompt fluctuates, responding to volatile wind generation. Elsewhere, fighting in eastern Ukraine has escalated with recent peace talks offering little respite. The EU is set to enhance sanctions against an economically-stricken Russia for their role in the conflict, whilst a win for the anti-austerity Syriza party in the Greek elections triggered fresh economic uncertainty for the Eurozone.
With the current market levels at a near 4 year low we are recommending all clients with a 2015/2016 electricity & gas contract renewal to go to market now for new pricing. Please contact Syntegra Energy Utilities: gl@syntegra-epc.co.uk or Giles Lawson on 08450 091 625 regarding our transparent Online Energy Reverse Auction Platform (syntegra.energybutingportal.com) on how we can assist you with free set up to access the market.
This document is for information purposes only. The information contained has been compiled from sources believed to be reliable. Whilst every effort has been made to ensure that the information is correct and the views are sounds, Syntegra Energy Utilities cannot be made liable for any loss no matter how it may arise.
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