Business electricity

Is the UK facing a power supply crisis?

The UK Government announced in 2015 that it will be closing its remaining coal power stations in favour for cleaner gas power stations by 2025. This was a popular decision, with coal power stations accounting for a very large part of the UKs carbon emissions. However The Institute of Mechanical Engineers (IMechE) believe that the plans have been rushed and are currently unrealistic.

Why you should be looking at your next energy contract now

You still have between 6 months and 12 months remaining on your current contract and your next contract negotiations are some time away, there is no reason to be looking at the contracts now, right? Not exactly, when looking at the wholesale gas and electricity markets the prices fluctuate on a daily basis and therefore it is when you sign the contract that is  important when trying to minimise costs.

By 2025 the UK will have phased out coal power plants

The UK’s Energy Secretary Amber Rudd has announced that all remaining coal power plants will be phased out by 2025, instead shifting the focus onto gas power plants. Coal currently provides almost a third of the UK’s electricity supply, as seen in the diagram, however Mrs Rudd would like gas to play a much more important role.

Concerns raised over the UK’s energy security

The National Grid are to be questioned by The Energy and Climate Change Committee about how safe the UK’s energy security is. This comes after it was announced that the gap between peak demand and total power generating capacity will be the tightest for a decade.

This had been heavily criticised by the shadow energy and climate change secretary, Lisa Nandy, who blames the Conservative Government for the tight gap, stating it is because the Tory’s have attacked the UK’s renewable energy industry.

Winter energy supplies secure, says National Grid

This years National Grid Winter Outlook has revealed that supplies will be secure throughout the winter. The Winter Outlook is a report that is regarded as a key indicator for the UK’s energy supply and if there was any concerns regarding supply, it would show up in the report.

North West England receives £132 million power network investment

An investment totalling £132 million pound has been made to improve the North West’s power lines, underground electrical system and substations. The investment has came over the past 12 months and will benefit almost 5 million electricity users from Merseyside to Cumbria.

The improvements to the network included a £20 million fund dedicated to improving overhead power lines and pylons, as well as a £3.7 million investment to cut down trees that could cause a risk to the power lines.

The UK’s future electricity supply takes a hit

The UK’s only planned gas power station is now in doubt after it emerged that Carlton Power, the company who was awarded a government subsidy to build the plant, had failed to secure financial backing. The plant was due to be built in Trafford, Manchester and was due to start producing electricity for the UK in 2018, however that now looks in doubt.

Business electricity​​

Gas demand lower than expected

Gas demand has been reported as lower than expected for this time of year, although prices have risen throughout the week. Oil prices have started to increase again over the past week, rising from $43 per barrel to just over $51 per barrel.

Electricity prices have also followed gas and oil rising sharply this week. A power outage at the Sleipner Platform caused it to shutdown this week which stopped Norwegian LNG imports. This is believed to have contributed to the rise in gas and electric prices.

Last coal-fired power plant in Scotland to close

Scottish Power has announced that they will be closing Langannet Coal Power Plant at the end of March 2016. This was the last coal powered power plant remaining in Scotland and will close after 46 years of producing power in Scotland.

Scottish power have said that reemployment opportunities will be available for the 230 staff whose jobs are directly affected. The explanation for the close was put down to the high carbon taxes and transmission charges which had caused running the plant to become uneconomic.

Gas and power contracts fall again

Seasonal gas and electricity contracts reached record lows in July, as winter storage worries were offset by lower oil prices. A strong pound against the euro, as well as an announcement that additional storage for the winter had been approved helped keep prices on a downward trend.

Annual October 15 gas fell to average 44.7p/th, a 2.7% reduction over the month and Winter 15 contracts fell by 2.3% to reach their lowest point since 2010. Electricity prices followed gas prices with the winter 15 contracts falling by 1% to average £45.4/MWh.

Pages