The window of opportunity for lower rates in the second half of August was brief as prices moved up strongly through September.
Above average number of price book changes kept GET on their toes to seek out the best deals and act.
October 1st marks the start of the new Energy Year in the world of Gas supply contracts. The market is hoping for a cooling of the high rates currently on offer.
On the back of the recent Ofgem publication to make all meter types for business and domestic half hourly measured, ensuring accuracy of billing.
It should be understood that day and night power rates include charging components for network distribution and transmission, as well as Renewable Obligations, Feed-in-Tariff, Electricity Market Reform: Contract for difference.
What these components all have in common is the ability to influence our energy consumption patterns.
A client cant understand why two his properties standing side by side and with similar annual consumption figures are offered quite different Half Hourly day, night rates. One looks to be very attractive, whilst the other far less so.
The answer lies in the consumption pattens of the two sites. Whilst one has a high usage during office hours and what are described as the peak hours on the Power Network clock 4pm – 7pm, the other site, being an accommodation block has a steady, better spread of usage over a 24 hours period.
Is the latter site that enjoys the attractive rates whilst the office block seems penalised. Advice from the supplier comes by way of suggestion to move their office opening hours !
With the arrival of smart meters and greater awareness of ones power consumption pattern, there may be thought given by businesses to more than just switching lights off when the room is unoccupied.
Late August weakness on the wholesale market finally fed into Supplier price books bringing welcome reductions in prices. Half Hourly rates followed a similar route.
It makes for a busy time at GET as we look to seize the opportunity to secure attractive offers for our clients.
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
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
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.
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.
Another of those emails dropped into our tray today….Why is it that many suppliers of services tend to penalise their existing client base by rather offering tempting new packages at attractive prices to lure in the unsuspecting prospect. We constantly see new 12 month contract offers at rates some way below ‘industry standard’ prices of the moment and many new clients are acquired by this means.
Come month13 however it is a very different story and the now ‘existing customer’ is moved into the ‘renewal price’ arena, unable to gain access to the juicy prices being offered to potential newbies.
At GET we treat our customers as if part of the family, we take a long term approach to the retention of them as our clients. Their business success is our success in that we play a small part in keeping our services to them the most beneficial and competitively priced possible. We are constantly on the look out for and secure prices that outdo those renewal only deals.
Please call us today to discuss your renewal prices and perhaps become part of our family