This time last month, we were fearful of the direction and strength of price movements, considering ‘treacherous’ and ‘unpredictable’ times. At that time, we had gas for Q3 around 58p per therm and Winter 11 at 67p per therm. Considerably worse followed, with the devastating events in Japan followed by the German response on nuclear plants, and prices peaked at 66 and 74 respectively. The last two weeks have been a bumpy ride with prices back to these peak levels.
Summit Energy Risk Management professionals view prices as higher than the fundamentals support, but the question remains on when the market will react to what is actually happening than what could happen next. continue
At a recent conference in London hosted by EdF, the audience members (over 300 UK-based energy professionals) were asked to ‘vote’ on which of the four following aspects were of greatest concern now, and results (from my rough notes) were very interesting:
Supply Contracts 11%
Compliance to regulations 15%
Funding for Energy Efficiency 18%
Energy Price – volatility and risk 56%
Big news from the UK today. There was a record spend for football players in the transfer window – £200m – with 25% being Chelsea’s acquisition of Torres from Liverpool. Is Torres worth £50million? Obviously to Chelsea he is, and football is a free market and makes money. But the end of this type of competition is in sight in 2013 when the European rules for “fair play” will require clubs to work within constraints related to their financial performance.
There was a very enjoyable article in the Times some weeks back titled “The Lampard Question,” which considered that that both footballers and bankers receive (by any standards) fantastic rates of pay. It argued that whereas footballers are worth it (rare skills with many people prepared to pay to see particular players), there is nothing to the same degree within the banking sector.
Bringing the focus back to our scope of influence, energy, environmental and transport taxes in the UK raise £38 billion – or 7% of total tax revenues. As part of the Coalition commitment to “Freedom, Fairness and Responsibility,” will be “the introduction of a floor price for carbon, an increase in the proportion of tax revenues from environmental taxes and the tax system to be more competitive, simpler, fairer and greener.” continue
We at Summit UK are pleased to announce that Mark Sullivan will be joining the team in February 2011. Mark has extensive experience in the UK market. His background in energy has covered just about all areas of energy procurement and price risk. A spell in sales and marketing gave him real insight to developing and enhancing services to support energy consumers.
Mark is also joining a much more international company. He will be surprised at the following for football (or UK Soccer for my colleagues in Louisville) and will be the second West Ham supporter in the company. No 1 supporter Matt Smith and I exchanged greetings just before Christmas. This was just ahead of West Ham’s return to form and their great performance at Craven Cottage, so we stuck to UK gas prices. continue
December 7, 2010 • Perspectives
by Noreen Guy
The early onslaught of winter in the UK prompted a major escalation in prices for gas and power. Compared to just a month ago, day-ahead gas increased by 37%, first quarter gas for 2011 increased by 14%, and summer gas for 2011 increased by 11%. As usual, power moved in similar fashion continue
Carbon Reduction Commitment – The Energy Efficiency Scheme (aka, CRC). After compliance, what next?
In 2008 the message to consumers was ‘are you prepared’. Well how could that be? Only a general understanding of the implications and requirements to be compliant were established at that time. There were many changes to the scheme and critical points needed clarification even as the scheme went into operation earlier this year.
Registration opened on 1st April 2010 and most completed their registration well ahead of the closing date of 30th September – making an enormous effort to establish their position in good time. continue
November 15, 2010 • Current Events, Perspectives
by Noreen Guy
Summit celebrated the launch of their UK operation in London at The Globe Theatre earlier this year. In a truly international effort, clients and business contacts gathered to hear Summit’s CEO, Steve Wilhite, talk on the key issues for commercial and industrial energy consumers.
The key themes of Globalisation, Complexity, Sustainability and Volatility were considered in the context of the implications to business organizations and discussions continued between guests and Summit subject experts from Europe and USA well into the evening. This event was an opportunity to look behind the scenes at the models and techniques employed by Summit in supporting their clients. continue