As Fred Goodwin the departed RBS chief exec weathers the media storm over his pension pot, Powerisk asks if his decisions are affecting the power market.
The power market is heading for a tough period whereby in 2012 -2015 there will be a need for a further 11GW of power plant in order to replace old and de-commisioned plant scheduled to come off-line. The power industry has been aware of this for some time, and so last year lobbying of government and financial planning started. Winding the clock forward by six months we can see a near collapse of prices and the complete collapse of the credit markets. This has meant the economics of building a power plant have changed radically. Is this Fred the Shreds fault? indirectly RBS was one of the largest collaterilised lenders in the UK power sector, but now being over 70% owned by the government it is no longer such a large and safe player.
22 April 2009
The chancellor stated that he wanted the UK to cut emissions by 34% by 2020. read more...
29 February 2008
EU still voting on how to unbundle the energy companies of Europe. read more...
14 January 2008
Although the headline suggest that the big six get together and set price, in reality it is unlikely that they actually do. read more...
The Rally Continues in Electricity
Where June ended on a bearish note, July opened with a distinctly more bullish feel to it. By the 8th July, the Winter contracts had each gained around £1/MWh with Winter 11 trading at £57.70/MWh, Winter 12 at £59.60/MWh and Winter 13 at £63.45/MWh. read more...
08 July 2011
Where June ended on a bearish note, July opened with a distinctly more bullish feel to it. By the 8th July, the Winter contracts had each gained around £1/MWh with Winter 11 trading at £57.70/MWh, Winter 12 at £59.60/MWh and Winter 13 at £63.45/MWh. read more...
Energy Curves regain some of the Losses
The energy markets have recovered from the 'plunging losses' seen earlier in June which dragged down fuel and power prices. Prices across the power curve all report strong week on week gains. read more...
01 July 2011
The energy markets have recovered from the 'plunging losses' seen earlier in June which dragged down fuel and power prices. Prices across the power curve all report strong week on week gains. read more...
Prompt Prices at a Premium to Winter..
The focus this week has been on the prompt markets with system constraints and gas uncertainty the main cause. Together the constraints and uncertainty have had an interesting impact on the shape of the power forward curve. read more...
01 October 2010
The focus this week has been on the prompt markets with system constraints and gas uncertainty the main cause. Together the constraints and uncertainty have had an interesting impact on the shape of the power forward curve. read more...
Gains Seen Across the Curve
There was no sign of an early Christmas in the power market on Friday with a 'flurry' of trading resulting in gains across the power curve. read more...
21 December 2009
There was no sign of an early Christmas in the power market on Friday with a 'flurry' of trading resulting in gains across the power curve. read more...
New trading levels anticipated in UK Power Markets
The electricity market saw two main technical levels breached for the first time in the Summer 10 and Winter 10 contracts. read more...
28 August 2009
The electricity market saw two main technical levels breached for the first time in the Summer 10 and Winter 10 contracts. read more...
Solar in the UK - Not So Bright
DECC has published the Comprehensive Feed-in Tariff (FiT) document and at the same time, many say, put a nail in the coffin for the Solar Industry in the UK. With the FiT rate for Solar Power to be cut by more than 50%, and with a proposal that eligibility to the scheme should be linked to a minimum energy efficiency requirement - many fear that this will be the end for the industry read more...
01 November 2011
DECC has published the Comprehensive Feed-in Tariff (FiT) document and at the same time, many say, put a nail in the coffin for the Solar Industry in the UK. With the FiT rate for Solar Power to be cut by more than 50%, and with a proposal that eligibility to the scheme should be linked to a minimum energy efficiency requirement - many fear that this will be the end for the industry 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...
We're borrowing less than expected....
As the government prepares its spending review it will no doubt welcome the latest figures that show net borrowing for July at £3.8bn. While still sizeable, this is £1.2bn less than forecast and well down on the £6.1bn that was borrowed in the same month last year. read more...
20 August 2010
As the government prepares its spending review it will no doubt welcome the latest figures that show net borrowing for July at £3.8bn. While still sizeable, this is £1.2bn less than forecast and well down on the £6.1bn that was borrowed in the same month last year. read more...
Confidence knocked in the Financial Markets
Statements from around the world all suggest a stalled recovery while closer to home there are continuing signs of inflationary pressures at a time of slow to stagnant growth. read more...
12 August 2010
Statements from around the world all suggest a stalled recovery while closer to home there are continuing signs of inflationary pressures at a time of slow to stagnant growth. read more...
Energy Secretary gives the first annual energy statement to the Commons
Chris Huhne, the coalition government Energy Secretary yesterday gave the first annual energy statement to the Commons. He set out plans to secure energy supplies and cut carbon emissions. In all 32 measures were outlined all with the aim of helping the UK achieve the legally binding target to cut emission by 80% by 2050. read more...
28 July 2010
Chris Huhne, the coalition government Energy Secretary yesterday gave the first annual energy statement to the Commons. He set out plans to secure energy supplies and cut carbon emissions. In all 32 measures were outlined all with the aim of helping the UK achieve the legally binding target to cut emission by 80% by 2050. read more...
What's in the Mix?
While gains may have been seen in both the power and gas markets this week – the gains were not equal causing a big shift in the generation mix read more...
24 September 2010
While gains may have been seen in both the power and gas markets this week – the gains were not equal causing a big shift in the generation mix read more...
Out with the Old, In with the New
During the last day of trading in 2009, the UK Power curve closes down but what will the New Year hold in store? read more...
31 December 2009
During the last day of trading in 2009, the UK Power curve closes down but what will the New Year hold in store? read more...
Unseasonal Temperatures help to melt prices
Middle of November but no sign of wintery temperatures. The effect was to soften the prompt power market, which also felt the pressure from weak commodity curves. The downward trend fed through the power curve. read more...
16 November 2009
Middle of November but no sign of wintery temperatures. The effect was to soften the prompt power market, which also felt the pressure from weak commodity curves. The downward trend fed through the power curve. read more...
Market forgets basic principles and panics!
It could be said that the market over reacted today in the prompt market with a price rally on the back of a £142 half hourly cash out price. read more...
02 October 2009
It could be said that the market over reacted today in the prompt market with a price rally on the back of a £142 half hourly cash out price. read more...
What's Happening in the Back-End?
The back end of the curve is extremely difficult to trade. Those dipping their toe in tend to be Producers (with excessive length adjusting their risk positions) and Banks looking for some exposure. At the same time Retailers tend to be short-termist. read more...
19 June 2009
The back end of the curve is extremely difficult to trade. Those dipping their toe in tend to be Producers (with excessive length adjusting their risk positions) and Banks looking for some exposure. At the same time Retailers tend to be short-termist. read more...
Referral to Competition Commission Called For
Allan Asher, CEO of Energywatch, claims that the energy regulator Ofgem is failing by not referring the UK energy markets to the Competition Commission. read more...
21 May 2008
Allan Asher, CEO of Energywatch, claims that the energy regulator Ofgem is failing by not referring the UK energy markets to the Competition Commission. read more...
EU unbundling bungled
EU still voting on how to unbundle the energy companies of Europe. read more...
29 February 2008
EU still voting on how to unbundle the energy companies of Europe. read more...
Ofgem investigates
Finally an competition enquiry into the energy market has begun. read more...
21 February 2008
Finally an competition enquiry into the energy market has begun. read more...
Ofgem question ERA
Ofgem cover their backs by writing to the ERA, who not surprisngly respond with a "Who me?" attitude. read more...
21 January 2008
Ofgem cover their backs by writing to the ERA, who not surprisngly respond with a "Who me?" attitude. read more...
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