2nd Quarter Growth at 1.1%; What Role For Energy
 
23 July 2010
Preliminary figures from the Office for National Statistics (ONS) suggests the UK economy grew by 1.1% in the second quarter, up from the previous quarter's 0.3%. While the figures are preliminary (and based on around 40% of the ultimate data), what they do show is that construction, a relatively small part of the economy, contributed significantly to this growth figure. With 6 out of 10 civil engineering firms looking to the energy and water sectors for their income streams, it seems energy has a role to play in underpinning the recovery.  
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Green Investment Bank still a Concept
 
16 July 2010
Leading figures from across industry warned that the need for new tools to finance future investment in infrastructure are necessary to secure Britain's growth as a low carbon economy. While the coalitions Green Investment Bank (GIB) is supported, it is important to recognise that it is still at present only a concept.  
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Suddenly it's "British Petroleum"
 
02 June 2010
A name not used in a very long time, but suddenly the US are quick to refer to BP by its old name of British Petroleum, hoping perhaps to distance itself from blame regarding the disastrous oil spill in the Gulf of Mexico. But as the US announces a criminal investigation and as BP shares suffer further should the British economy concern itself?  
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A Week for Releasing Figures
 
20 April 2010
With the political debate heating up; more 'head to heads' scheduled and with the News Channels pouring over polls, polls of polls and more polls - then the economic figures coming out this week are surely going to add a lot more ingredients to the boiling pot.  
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UK Manufacturing slides further
 
07 December 2009
Corus announce plans to mothball most of its Teeside Cast Products steelmaking site - resulting in a loss of over 1,700 jobs and slate the UK Government at the same time for its lack of support.  
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Demand Led Economic Recovery?
 
09 October 2009
What constitutes real demand is a question increasingly being asked, not least because it is viewed as a key indicator to signal the start of economic recovery. However a rise in demand may not necessarily mean a lift to the economy.  
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G20 has a lot to answer
 
03 April 2009
The famous $1trillion barrier was reached by the G20 and the markets all rose on the ebullient nature of the meeting, but is it real.  
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Gas takes the Lion's Share
 
24 December 2008
Some interesting figures and statistics emerged from the Department of Energy and Climate Change (DECC) Energy Trends report published this week - increased power demand, improved efficiencies and record fuel percentage shares.  
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Energy Companies look set to raise prices
 
07 August 2008
All the energy suppliers are bound to increase prices by double digits, but in reality some are keen not to be the price leader as they do not want to grow their supply buinesses in these uncertain times.  
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No Quick Get-away for Aviation
 
08 May 2008
It seems that the aviation sector will still be included in the EU Emission Trading Scheme for 2011. The European Parliament is sticking by its tough proposal to include them despite the sector remaining unprepared for trading.  
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The art of front running
 
06 March 2008
Front running a position can cause some players to look good, but it might be the way to start to trade a contango market  
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Weather derivatives
 
28 March 2007
The key to working out risks is knowing what they are and how to hedge them, too many players take on basis risks because they believe there is perfect correlation.  
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Prices feel stuck
 
22 February 2007
The market knows that the bottom cannot be too far away but it is being cagey when it wanst to test the low levels.  
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Making sense of power prices.
 
11 September 2006
Power prices have fallen in the past 3 months, 2009 is trading at a £5 discount to 2007, yet suppliers are increasing their tariffs and offering contracts to fix this year’s price for the next few years. Does it make sense?  
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Is now a good time to buy April Annual 07
 
27 July 2006
It may look tempting as everyhing is trading at a discount to 2006 but in reality there is still alot of price premia built in to the back end of the curve on nothing more than what has happened this year. Fundamentals for next year suggest that the price should fall further.  
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Bears test market
 
27 June 2006
Technicals look to be holding the Winter 06 baseload contract above £60 but players must be aware that technicals are working because the world cup has quitened down some the incumbent players and as long as the market jobs around no one will worry.  
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The Rising Costs of Energy
 
14 June 2006
Higher energy prices have helped push up inflation which in turn is likely to push up interest rates. Those exposed to rising fuel costs are now likely to start feeling an indirect impact on their borrowing costs.  
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Is now a good time for a three or five year deal.
 
05 May 2006
Five year deals may look attractive because the market is in backwardation but in reality there will be other opportunities as more detail on fuel fundamentals is released. No harm in hedging some exposure for five years but not all of it.  
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Traders focus on Winter 06.
 
20 March 2006
Bulls are returning to the market and Winter 06 is getting attention but a fundamental shift has already been seen in the market to reflect emissions prices, and so the near doubling of Winter contracts seen last year is unlikely for this year.  
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Does shape matter?
 
27 February 2006
Under the NETA rules the market would always favour those who are flexible and able to adapt. As stability in market prices is becoming more normal, this allows players to assess the market even start to think about creating flexibility within their own shape.  
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The other traders thought pattern.
 
06 January 2006
Traders sell curve as an opening gambit to put positions on for 2006. Customers wary of a potential rise, look at reassessing the market in front of them and try to think like traders.  
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One traders thought pattern.
 
05 January 2006
Traders buy up curve as an opening gambit to put positions on for 2006. Customers wary of a potential rise, look at reassessing the market in front of them and try to think like traders.  
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Security of supply expected to dominate 2006
 
04 January 2006
A year of investment and short term uncertaintity ahead of us. Customers
have to be more bold at making decisions and placing bids in the market. This
will give them confidence and the market liquidity and stability. This allows
growth in options markets and allows the market to develop.  
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Christmas Week sees drop in prices
 
22 December 2005
Very quiet as opportunities are thin on the ground. Time reflect on 2005 as a
volatile year and hope that 2006 brings more liquidity to the UK power market.  
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Are the markets broken?
 
14 November 2005
The market is becoming more volatile less liquid and players are spooked, it is not broken, it is just more scary to operate it.  
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Met Weather Prediction
 
28 September 2005
Weather is difficult to predict long term but in the short term it is the key
fundamental driver on price, and this is why prompt prices for next week have
risen.  
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Power Market eases off.
 
02 August 2005
The power market sags under the weight of its fundamental friends. Steel industry points to unfair advatages in Europe.  
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Is seasonality dead
 
23 June 2005
The differences between Winter and Summer are getting narrower, but this may indirectly cause more problems. If the Swiss trains stop what next?  
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