Ofgem pushing HH settlements for all

Ofgem has published an open letter confirming the intention  of mandatory half-hourly settlements for all types of meters.

Previously this application was only for businesses with a supply greater than 100Kw and most recently we have had the P272 process bringing in to the regulation all Max Demand (05- 08) meters.

Now Ofgem are talking about making all size of electricity meters half-hourly measured including domestics. This may further improve services for suppliers but could add costs for the ‘service’ to customers

Prices soften a touch

The first half of July has seen  contract prices come off the highs seen last month and following the rising curve since February.

A slump in crude oil prices has played a part in that, as well as an increase in Gas flows out of Norway. Milder weather may help maintain market weakness

Currency bottom called after ‘minor shock’

Goldman Sachs have called the bottom in the Brexit collapse of the British pound against its Eurozone counterpart.

Pound Sterling has suffered a notable hit over recent weeks tumbling from highs near 1.32 recorded ahead of the referendum result release to the sub-1.20s seen at present.

A lack of clarity on the outlook facing the UK economy has seen businesses pull back on investments and a flurry of European countries start to bid for UK businesses potentially looking to leave for the continent in order to maintain unfettered access to the single European market.

However, Robin Brooks at Goldman Sachs says there is a risk in assuming the UK is about to suffer a shock akin to those felt by emerging markets when an adverse shock is felt.

The distinction with emerging markets is important.

“Emerging markets often have large current account deficits, much like the UK,” says Brooks, “capital inflows then halt abruptly or even reverse on an adverse shock, a ‘sudden stop,’ and exchange rates tumble.”

This is not what is going on in the UK though, Brooks argues.

“In the wake of the Brexit vote, markets are functioning normally, capital is flowing in as well as out of the UK, and global risk markets are looking through what is a relatively minor shock for the global economy,” says Brooks.

July to see cools temperatures

Weather forecast models and expert analysis are collectively showing only minor increases in peak temperatures for July across the UK. Charts for much of the first half of the month at least  suggest that the UK will be effected by a cooler Atlantic.