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…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

Does your business operate within an energy-intensive sector? If so, it may be time to put a CCA in place to minimise both your environmental impact and your energy costs.

At Experienced Energy Solutions, we often receive enquires from customers about Climate Change Agreements (CCAs) and how we may be able to support them with navigating this area. As with much of the regulation in the energy sector, CCAs can be daunting to begin with, however the team at Experienced Energy are here to guide you through the process of setting up a CCA and support you throughout your reporting period.

What are CCAs?

Climate Change Agreements are voluntary commitments made by companies in energy-intensive sectors, with the aim of reducing carbon emissions and improving energy efficiency. Whether you are an SME or a large national corporation, all businesses have a duty to monitor their energy consumption and minimise their impact on the environment. CCAs provide a framework to achieve this.

There are two ways for businesses to participate within the CCA scheme; through ‘Umbrella’ agreements, or ‘Underlying’ agreements. Umbrella agreements are negotiated between sector associations and the Department of Business, Energy and Industrial Strategy. Alternatively, you could hold your own underlying agreement, covering individual or groups of sites operated by your organisation.

 

Why you should have a CCA

CCAs encourage positive changes towards energy usage for the benefit of the environment. They also have a financial incentive for participation. By holding a CCA, you will receive significant discount on the Climate Change Levy applied to your energy bills.

The percentage discount applied can be found below:

Source: https://www.gov.uk/guidance/climate-change-levy-rates

How Experienced Energy can support you?

Participating within the CCA scheme can require a time commitment towards submitting your application, implementing efficiency measures and reporting on your targets. This is where Experienced Energy Solutions come in. We have supported numerous businesses with their CCA application, and using this experience we will ensure that any agreements you commit to are right for you and your business. Once your CCA is in place, we take the pressure away from your organisation, providing ongoing support with all reporting requirements, and by ensuring you receive the best deal for your energy costs.

Targets for participating sectors under the current scheme run until 31 March 2023; therefore time is of the essence to benefit from CCL discount, and make positive changes towards being a more environmentally friendly, sustainable business.

To find out more about how the Experienced Energy team can support you to reduce your energy costs and maximise the efficiency of the energy you consume, please contact our Operations Manager Craig Watson on 02475 094 090, or alternatively email hello@experiencedenergy.co.uk quoting CCA.