Sometimes negotiation on some elements of price could result in some interesting opening into the black box which is electricity pricing.
Shape risk has become more of an issue for some suppliers over the last couple of years. When gas prices were high running of generation was limited to peak only and this tended to suppress peak prices. Also emissions prices tended to make nights more expensive and increase off peak prices. Therefore in the "old days" peak vs baseload was around 1.2. Now that gas prices have fallen and the cost of emissions are low this spread has widened out to nearer 1.26 and on occasions is trading at a 1.3 ratio.
Canny suppliers are suggesting that this change in market conditions should be applied to market contracts going forward in reality this is a little like saying that because the price is at £60/MWh we are going to ifx your contract at these levels for next year and the year after. There is no doubt that the change means that shape risks are increasing but these are risks which suppliers manage all the time and the additional charges should not always be passed on at will to the customer.
23 August 2005
Flexible purchasing is a change for the best but it needs care and management in order to get it right. read more...
28 June 2005
The market quietens down, with fewer trades and traders re-evaluating positions. read more...
27 June 2005
"The most valuable commodity I know of is information." Wall Street read more...
24 June 2005
The more customers a supplier has in a rising market the more exposure to power price they have, this may not always be welcome when the buying forward is so expensive. read more...
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? read more...
Energy Forward Prices continue to gain ground
Despite market participants describing the market as stagnant and directionless, energy forward prices continue to gain ground. Winter 11 power closed the week up at £59.65/MWh while NBP Winter 11 gas finished at 72.20p/therm. read more...
10 June 2011
Despite market participants describing the market as stagnant and directionless, energy forward prices continue to gain ground. Winter 11 power closed the week up at £59.65/MWh while NBP Winter 11 gas finished at 72.20p/therm. read more...
The Market in April 2011
In comparison to the activity seen in March – the energy markets seemed relatively sedate shedding some of the value along the way. read more...
28 April 2011
In comparison to the activity seen in March – the energy markets seemed relatively sedate shedding some of the value along the way. read more...
Carbon Floor Price Announcement: The Market Reacts
The tensions seen in the markets last week, as participants assessed the impact of Japan and nuclear withdrawal in Germany, appeared to have eased when the market started trading on Monday. The Government's mid week budget Carbon Floor Price announcement soon changes that though read more...
25 March 2011
The tensions seen in the markets last week, as participants assessed the impact of Japan and nuclear withdrawal in Germany, appeared to have eased when the market started trading on Monday. The Government's mid week budget Carbon Floor Price announcement soon changes that though read more...
Crude Oil Breaks Through $110bbl
Unfolding news in the Middle East continued to dominate the UK energy markets this week. When crude oil prices broke through $100bbl at the start of the month, the impact was noticeable on UK gas prices and Power prices in turn. Winter 11 power and gas closed the week at £55.75/MWh and 67p/therm respectively. read more...
04 March 2011
Unfolding news in the Middle East continued to dominate the UK energy markets this week. When crude oil prices broke through $100bbl at the start of the month, the impact was noticeable on UK gas prices and Power prices in turn. Winter 11 power and gas closed the week at £55.75/MWh and 67p/therm respectively. read more...
New White Paper highlights need for Energy Risk Management
Yesterday, npower launched its new white paper, commissioned from the London School of Economics on Energy Risk Management for UK business. The paper comes on the back of research that suggests that UK businesses now feel that energy presents a higher level of risk to their business than health and safety and security issues. But what should businesses be doing to manage the risks? read more...
11 November 2010
Yesterday, npower launched its new white paper, commissioned from the London School of Economics on Energy Risk Management for UK business. The paper comes on the back of research that suggests that UK businesses now feel that energy presents a higher level of risk to their business than health and safety and security issues. But what should businesses be doing to manage the risks? read more...
Powerisk Receives-Independent Energy Consultant Commendation
At the recent Energy ‘Buying and Supplying’ Excellence Awards, Powerisk received a Commendation in the Independent Energy Consultant of the Year category. The awards, held at The Langham Hotel in London, were designed to showcase and recognise the very best practises in the energy supply and procurement arena with consideration given to all those involved in the process. read more...
29 November 2010
At the recent Energy ‘Buying and Supplying’ Excellence Awards, Powerisk received a Commendation in the Independent Energy Consultant of the Year category. The awards, held at The Langham Hotel in London, were designed to showcase and recognise the very best practises in the energy supply and procurement arena with consideration given to all those involved in the process. read more...
New White Paper highlights need for Energy Risk Management
Yesterday, npower launched its new white paper, commissioned from the London School of Economics on Energy Risk Management for UK business. The paper comes on the back of research that suggests that UK businesses now feel that energy presents a higher level of risk to their business than health and safety and security issues. But what should businesses be doing to manage the risks? read more...
11 November 2010
Yesterday, npower launched its new white paper, commissioned from the London School of Economics on Energy Risk Management for UK business. The paper comes on the back of research that suggests that UK businesses now feel that energy presents a higher level of risk to their business than health and safety and security issues. But what should businesses be doing to manage the risks? read more...
Suddenly it's "British Petroleum"
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? read more...
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? read more...
Why is the Dollar Important?
With LNG now having a place in the UK gas market, the dollar will influence our energy prices. read more...
25 September 2009
With LNG now having a place in the UK gas market, the dollar will influence our energy prices. read more...
Recent oil price rises will not last
The recent oil price increase seen last week has already started to fall and Powerisk explains why it will continue to stall. read more...
25 March 2009
The recent oil price increase seen last week has already started to fall and Powerisk explains why it will continue to stall. read more...
Too Many Buyers….
Too many buyers and not enough sellers were the reasons attributed to significant gains seen in the power markets. read more...
08 October 2008
Too many buyers and not enough sellers were the reasons attributed to significant gains seen in the power markets. read more...
Backwardation and contango
The curve is changing shape this could be a short term thing as players tend to forget the back of the curve as it is less liquid but more often than not it is a fundamental shift in the market next week will tell. read more...
20 April 2007
The curve is changing shape this could be a short term thing as players tend to forget the back of the curve as it is less liquid but more often than not it is a fundamental shift in the market next week will tell. read more...
Why volume risk is greater than one thinks
Volume to the supplier is important but little changes in volume can soon mount up and so players must be careful when they have a growing portfolio. read more...
21 March 2007
Volume to the supplier is important but little changes in volume can soon mount up and so players must be careful when they have a growing portfolio. read more...
The Nightmare Scenario
The market balloons in price, profiling is abandoned, and Mrs Jones at 33 Wavertree Mansions is seen showering at 3am in the morning. Unlikely, but it is happening in the water industry. read more...
01 March 2006
The market balloons in price, profiling is abandoned, and Mrs Jones at 33 Wavertree Mansions is seen showering at 3am in the morning. Unlikely, but it is happening in the water industry. read more...
Does shape matter?
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. read more...
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. read more...
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