Energy Update: Israel-Gaza Conflict

A message from our operations director

Good afternoon,

A range of events over the last fortnight has emphasised the vulnerability of European energy reserves and costs. Events in Israel & Gaza, Australian LNG strikes, Norwegian gas production losses and colder weather all increased the pressure on gas stocks at the start of the winter heating season.

As can be seen electricity & gas prices rose by 43% & 21% respectively. The table below highlights that contract rates are only marginally higher.

The apparent small changes in unit rate and more significant increases in the standing charge reflect the sample having a number of very large gas & electricity supplies with both very low unit rates and very high standing charges.

Though more generally contract costs are higher they are more in the region of 10% though it varies with supplier & level of consumption etc. The contrast in increases in commodity and contract costs suggests that suppliers don’t expect these increases to be sustained. The settlement of the Australian LNG dispute alongside milder temperatures, increased wind generation and very high levels of gas storage are all positives.

Israel-Gaza Conflict

However, the Israel – Gaza conflict with further loss of life likely due to military action and the humanitarian crisis, will continue to represent some risk to global oil and gas supplies.

Escalation of events and action by other states in military or economic terms will only intensify the level of risk and we may see commodity costs rise further which will lead to significant increases in contract rates. The duration of this conflict is uncertain and as such may impact prices well into 2024.

The only thing that can be determined is that energy costs have entered a much more volatile period and while I don’t believe we will see prices from around a year ago, they may rise sharply. Consequently, operators need to decide if they want to fix now or see where costs go. It seems advisable to at least get a quote if you are in your renewal window.

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 click on the below to email or give us a call on:

Call: 02476 328995

Gerry O’Hara, Operations Director

WINTER: ENERGY SAVING ADVICE

As the colder months settle in, we at Nationwide Energy Consultants understand the impact that plummeting temperatures can have on your business’s energy usage.

We want to help you maintain a warm and comfortable environment while also being mindful of energy efficiency.

Here are some practical tips to keep both your workspace and energy bills in check during the colder weather:

OPTIMISE HEATING SYSTEMS

Ensure that your heating systems are in top condition. Regular maintenance & servicing can improve efficiency & prevent energy wastage.

SEAL GAPS & INSULATE

Identify & seal any gaps, cracks or leaks in doors and windows. Proper insulation is key to retaining heat & reducing the load on your heating systems.

UTILISE TIMERS

Timers allow you to schedule when your heating system operates, ensuring that it is active only during necessary hours.

CAN YOU IMPLEMENT ZONING?

If feasible, consider zoning your space, this allows you to heat only the areas that are in sue, reducing unnecessary energy consumption.

EDUCATE EDUCATE EDUCATE

Raise awareness among employees about energy-saving practices. Small changes in individual behaviour such as turning off lights & electronics when not in use, can collectively make a significant impact.

For any hospitality business that is really struggling with energy costs, or looking for further guidance on reducing energy usage, please contact our team direct.

Nationwide Energy’s regional consultants are available to assist.

024 7632 8995
info@nationwide-energy.co.uk

Nationwide Energy Consultants

Test

sub