Within my social circle and my more immediate network, I’m often getting asked the same question.

What is Net Zero?

Whether it be interested family members who are starting to see my face more across social media platforms, or old school friends who are now business owners, the words ‘Net Zero’ are increasingly more visual within the media, yet many people are still unaware of exactly what Net Zero means.

So where do we start? Like most modern-day tech enthusiasts, ‘Google’ is my fountain of all knowledge and if there’s ever a question I want to ask, I haven’t yet found a better place to start looking for answers.

So I type the words into Google ‘What… is… Net… Zero?’ and beneath the paid ads, the response that gets my attention first is the Dictionary definition.

Net Zero:

‘A target of completely negating the amount of greenhouse gases produced by human activity, to be achieved by reducing emissions and implementing methods of absorbing carbon dioxide from atmosphere’

and with the Dictionary definition response, I’m on to my next question… how do I know what greenhouse gases are produced by my own human activity? Because surely, I’m going to have to understand that before I can understand Net Zero?

The answer to that question is ‘Yes’, you will need to understand your own emissions before you can start to target ways of reducing them (something I will elaborate on further at a later date), but moving back to ‘What is Net Zero?’, an easier to understand definition I like to use is as follows:

Net Zero is the stage achieved when your pollutive activity is balanced and offset with greener activity within the earth’s atmosphere’.

Even by using the above definition, there’s still questions reaching out such as ‘What is pollutive and what is greener activity?’, and from here you start to realise Net Zero can become quite a complex statement to tackle, let alone trying to understand what’s happening with COP26 to be held later this year in Glasgow and Scopes 1, 2 and 3. (I’ve got excited with Google at this stage).

For now, I think it’s important to simply recognise something is happening. The current status of greenhouse gases being produced globally is having a huge impact on the world and climate change, as it’s more commonly known, is becoming more concerning the more we understand.

The UK Government have already become the first Government in the world to set a formal deadline to reach a position of Net Zero by 2050, and local regional councils are starting to push their own agendas with more pressing deadlines of 2030 being declared. There are also certain industry sectors who are starting to prioritise the Net Zero movement, with a view to ensuring end to end supply chains are all taking accountability to help fast track their route to the end goal, and with every one of these initiatives, every individual business and employee will have a part to play.

The take home message from me right now is that it’s unsustainable if we, as an economy, don’t begin to act and start to do things differently, but to begin to act we must first understand, and to do that that we’re back to the start. What is Net Zero?

To understand more about my personal views and the challenges I’ve seen within businesses wanting to start their journey, l’ll be taking part in a Webinar hosted by ELN alongside John Kyffin-Hughes, Business Engagement Manager at Low Carbon SME’s, part of Aston Business School.

To register for the webinar, the link is below:

https://www.brighttalk.com/service/player/en-US/theme/default/channel/10003/webcast/471516/play?showChannelList=false

…and just like that, it was February.

 

Welcome to the second edition of, ‘A Month in the World of Energy!’ 

To recap on last months blog, we provided you with a brief look at the market price movements for the Winter period 2020, ranging between April and August 2020, which turned out to be quite a dramatic ride with the UK Lockdown. Moving forward we will be providing you with a look back at the month just passed, as well as sharing with you our insights on the month ahead. 

So, on that note, how did January look? 

Well it started on a high…literally. On the 4th Jan the price of power sat around £61.50 /MWh (for the trading period March 21)whilst gas hovered around 55.04p/th (March 21). Energy prices were impacted by the news that oil output was under threat of being capped in February, meaning there was an uplift in commodity charges, and it was this, as well as the rise in coronavirus cases following a new variant, and below average temperatures, that resulted in higher than anticipated energy prices. 

By the end of January things were looking a little mixed, with power ending the month at £62/MWh, 50p higher than it started, while gas dipped very slightly to 54.5p/th.  

Overall, January was not the most exciting month but compared to the last blog, this one showcases the movements we see in a single month rather than over a larger period of time, meaning more stability would be expected. 

This means that the difference between buying your power and gas for March’21 at the start of the month, against the end of the month was pretty negligible, however by referring to the graphs below, you can see there was quite significant dips and rises within the case of a few days on both Power and Gas during the first week of Feb, something consumers could take advantage of with the right advice. 

And so moving forward to February… 

The graphs below represent the swing in commodity costs, again for March’21 between 01/02/21-05/02/21: 

 

          Graph A

 

                              Graph B           

 

Graph A shows that within a 5-day date range (01/02/21-05/02/21), the market appeared fairly stable, with only a £1/Mwh reduction between the 2 dates, however the difference between 01/02/21-02/02/21, saw the market drop by £3/Mwh overnight which equates to a 5% reduction, before steadily rising again. Whilst a weekly review of prices may have led customers to believe there’s been no real movement, a more strategic view involving in-day analysis could have reacted to the 5% drop.

To put that into perspective for a Manufacturing company using 250,000Kwh (250Mwh) within the month of March’21, if they’d have purchased their volume on 01/02/21, their energy cost would have been £15,000, however to purchase the same volume the following day it would have cost £14,250, which evidences the 5% saving.

If the same pattern was replicated across a 12 month period for the company, it could theoretically achieve a £9,000pa saving by adopting a more strategic approach with a consultant who is pro-actively monitoring the market on a daily basis, rather than offering high level monthly overview.

This is something we pride ourselves on offering at Experienced Energy Solutions and creating a strategy of this nature doesn’t have to be time consuming as we monitor the market on your behalf, only making contact when agreed triggers are set and hit by market movement.

To understand more about how this approach could benefit you and your business, please don’t hesitate to contact us at hello@experiencedenergy.co.uk or by calling us directly on 0121 274 3573

It’s January 2021, we’re back in lockdown and the energy market is on the move once again. When we entered lockdown 1.0 back in March 2020, nobody could have predicted the effect it would have on the energy market. Energy prices dropped, far lower than any expert could have foreseen and it became a great time for consumers to renew their energy contracts with the chance to lock out extremely competitive prices across multiple seasons on the forward curve, if they knew about the market position.

And it was this that made us think, whilst we in the industry are aware of the ever changing market and the opportunity it presents to the consumer, unless we reach out to make them aware, the customer has no idea when the perfect time to lock out their energy contract actually is.

With that in mind we decided to put together a monthly blog, ‘A Month in the World of Energy’ to help, not only our customers, but all consumers get to know what the market movements look like and what that means for them.

So, without further ado, we thought a good way to start would be to take a look back to April 2020, when the market was at a low.

Graph A showcases the cost of energy on the 3rd April 2020, £39.22 p/mWh vs on graph B from the 31st August 2020, where the price is now £51.07 p/mWh.

This may seem either a little, or a lot to a consumer, depending on your energy usage so, to give it some context:

Imagine you are a manufacturer using 1million kWh of energy per annum, with roughly 60% of this consumed during the winter periods due to an increase in light and heating usage. If you had purchased your energy contract on the 3rd April you would have saved £7,110 per annum, compared to if you had purchased energy on the last day of August. That’ s £7,110 more for the same energy that was available for purchase four months before.

This additional costing is based entirely on the energy alone which makes up around 40-50% of the total cost you pay to your energy supplier.

The other 50-60% is made up of none commodity charges which would also see an impact and increase over the same period, meaning the actual difference in cost would be much higher than £7,110.

If you don’t use quite as much energy as our example manufacturer you may not see the price change as too much of an issue, however it’s just one of the many reasons why it’s advisable to start reviewing the market up to 12 months prior to your contract renewal date.

Now if we take the last month into account, on the 21st December 2020 the daily baseload price for power was £43.50 p/mWh, compared to today 21st January 2021, it currently sits at £60 p/mWh… that’s quite a jump for one month, and it’s exactly this activity that we want to showcase to all business energy customers

We hope you found the first issue of A Month in the World of Energy, useful, insightful and valuable, and if you would like further details on just how the energy market is changing, reach out to the team at Experienced Energy Solutions and we would be happy to provide you with as much or as little information as you require.

We hope you all have a great January and keep an eye out for next months issue, coming to you in the first week of February!