LATEST MARKET UPDATE: Gas and Power prices are largely trading at parity with last week’s levels, despite some significant price swings at the front of the pricing curve. The bout of low pressure has seen reduced wind output, increasing demand for gas-fired power generation and stretching a European gas system which is struggling to attract global LNG. Winter prices have also been volatile with concerns over gas storage levels being partially offset by positive supply news surrounding the potential completion of the Nordstream 2 gas pipeline. Prices further out have been softer, as renewed coronavirus fears in the wake of the delta variant have weigh on global oil markets.
Last year showed us that the energy industry can fluctuate hugely in a matter of hours, the energy market saw prices it had never seen before, which caused mayhem for businesses across the country. We all had to think fast on our feet about how we would support our customers through the price increases, and we’re proud to say we managed to do this successfully. Moving into 2022, although we cannot predict the future, we have put together an overview of some of the factors that will impact the energy industry moving into 2022.
COP 26 made many people think about changing their behaviour to reduce the impact on they have on the environment. The Government announced their Net zero Strategy in 2021, which set forward how the UK will be net zero by 2050. They have committed to over £26 billion of government investment which will support over 440,000 jobs by 2030, making the UK one of the first major economies to legally commit to net zero by 2050.
This will support UK businesses as the Prime Minister has promised to bring down the cost of green energy, to make it more affordable for UK businesses. A number of further net zero strategies, policies and reports are expected in 2022.
The energy crisis
Having hit record highs at the end of last year, we expect energy prices to reduce this year as higher LNG (Liquified Natural Gas) availability has eased many short-term concerns surrounding gas storage levels. The UK-France Interconnector coming back online, together with the possibility of Nord Stream 2 becoming operational in the second half of the year, should further ease supply shortages. However, prices remain remarkably sensitive to the weather and a cold snap before the end of Winter could see prices rebound very quickly.
Energy efficiency projects can support your business in bringing down its energy costs, and it doesn’t have to cost the earth. Simple changes like switching to LED lights or installing solar panels on your business premises is something that can make a significant difference on your energy bills.
As part of eEnergy PLC, we can provide energy efficiency projects with zero capital investment to support your business throughout its journey to net zero. We can now help all businesses, no matter what sector they fall under, achieve their energy reduction goals to ensure you are on track to achieve your net zero targets.
The Government is considering extending ESOS (Energy Savings Opportunity Scheme) to include medium-sized businesses and making it mandatory for companies to act on their recommendations. We would advise all businesses to look out for this as they may find that they are now required to comply; those who are already involved may find their requirements have increased.
Understanding your energy consumption
With energy prices still high and the need for businesses to move towards net zero, it has never been more important for businesses to understand their energy consumption. With a conservative industry estimate being that businesses waste up to 30% of the energy, identifying where that is happening can significantly reduce your energy bill. We are already helping businesses visualise and act on their consumption data through our MY ZeERO platform. Being able to understand how you are consuming data at a granular level is the first step towards reducing wastage and identifying opportunities for energy efficiency projects.
How can Utility Team help?
At Utility Team, we can help your business build a robust energy management strategy that will help you navigate the increasingly complex world of energy. Our track record for identifying and implementing energy efficiency solutions and delivering savings means the businesses we work with see both environmental and commercial benefits. Our experts will support your business all the way through your energy journey, whether it is with renewable energy procurement or implementing energy efficiency solutions; we are here to help you.
Please speak to one of our experts at email@example.com or call us on 02476 997901