Welcome to your Nationwide Energy August Newsletter.
The commodity market has witnessed a mild downward trend over the last few weeks. Recent negative influences such as unexpected production losses in the Norwegian gas fields hasn’t reversed this. Day and month ahead prices are markedly lower than for the rest of the next 12 months.
Given the favourable conditions at present, I would expect commodity costs to roll forward as low in the coming month or so, rising thereafter as the market can’t be so certain and consequently prices more risk in.
Looking at the relationship between commodity and contract rates, again prices are largely unchanged as is the large margin between the costs suppliers pay and the rates they then offer to customers.
Some suppliers are still charging deemed rates of 60p+ for electricity and 25p+ for gas. It seems clear that this profiteering is unlikely to change without intervention by Ofgem and the Government. Ofgem’s review of the non-domestic market continues. The closing date for submissions was 6th September, with a report due around the end of the year. There is little indication at present of an appetite to intervene heavily or to limit the maximum costs that suppliers can charge business customers.
As we enter the colder months European gas reserves will deplete more quickly due to higher demand and the market will be more volatile. There are many more events that can push prices higher than will lower them. Any operators with a contract ending before 1st April is strongly advised to look at their renewal options before we move into winter. Nationwide Energy’s field consultants and renewals advisors are able to provide energy advice, a market review and updates on available prices.
Any customers struggling to pay current rates or who are at risk of default can contact our Billing Team for support and advice on their options. Please contact us on:-
Tel: 02476 328995
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