Business energy

Proposal to close the Feed in Tariff (FiT) proposed by the DECC

The Department of Energy and Climate Change (DECC) has put a proposal forward that would have huge affects on the renewable energy industry by hugely reducing incentives payed for by the Feed in Tarriff (FiT).

FiTs currently provide businesses payments for generating energy through methods such as installing wind turbines and solar panels. Businesses also receive payments for additional electricity they make by selling it back to the grid.

Oil prices fall again due to low demand

Global oil prices have taken another hit this week due to a surprise drop in demand from the USA and concerns over the Chinese economy. Analysts have indicated that the glut of oil is expected to continue into the new year which will keep prices low for the foreseeable future.

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.

Wondering how P272 will effect your company's energy bills?

P272 is a mandatory change instigated by OFGEM which will effect all profile classes 5-8 that have Automatic Meter Reading (ARM) installed. When the changes take effect all metres that fall within these profile classes with AMR fitted will be charged using the half hourly data instead of a pre determined price.

This will be implemented by the 1st of April 2017, although some suppliers are campaigning to have that pushed back to avoid their customers having to change their contact mid may through their current arrangements.

Key energy reforms for businesses in the budget

The budget delivered by George Osborne on the 8th of July has had a massive effect on the energy sector. A major part of that budget was the removal of the Climate Change Levy (CCL) exemption from renewable energy. The CCL tax effects non domestic users and was created as an incentive for companies to be more energy efficient, however, companies using renewable energy sources were exempt. The Chancellor decided that this was unfair, as it had meant that it was benefiting renewable energy produced abroad.

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.

Centrica to cut 6,000 jobs

Centrica has stated that it will be cutting 6,000 jobs after the British Gas side of the company had reported a doubling of its profits for the first part of the year. The majority of the job losses will effect the UK and Centrica is hoping that the majority of the job losses will be through redundancies.

The profits of British Gas have risen from 265 million to £528 million from this point last year, and Centrica has promised to create more jobs in other areas of their business to compensate for the 6,000 they will be cutting.

Why have some businesses still not acted on ESOS?

There has been a huge push by the industry to raise awareness of ESOS through articles, webinars, seminars and workshops, yet there are still some companies that have not started to act on ESOS yet. With the December the 5th deadline now fast approaching, you would think that the majority of companies that must comply, would have at least started to gather the information required for the audit, however, this is not the case.

Gas discovery made in the North Sea

A gas discovery has been made in the North Sea in one of its most mature regions, by Norwegian oil and gas firm Statoil and its partner Total E&P Norge. This comes on the same day that the UK authorities have granted 41 offshore exploration licences in a round of awards.

Critics have pointed out that the award to drill does not mean that the company’s will actually drill, however the opposing side state that the fact there is huge demand for the licences shows that the UK’s North Sea oil and gas industry are still attractive.

Solar and biomass subsidies to be slashed

The Government has set out its plans to reduce business energy costs and residential energy costs. The plans centre around the scrapping of subsidies for solar and biomass generation, which has been highly criticised by environmental groups that claim it is a massive step backwards for the UK’s renewable energy industry.

Pages