Energy Costs: During the second half of May, long term prices continued their upward surge following oil and coal markets. Supported by a strengthening dollar, coal briefly touched $90/tonne due to high Asian demand and oil passed the $80/barrel mark in reaction to Trump’s decision to impose sanctions on Iran and shortly thereafter Venezuela, both major oil producers. As June approached, gas and electricity prices took a brief tumble as China ordered domestic utilities providers to stop stockpiling coal, and Saudi Arabia and Russia discussed increasing oil production to plug supply deficits. For the coming weeks, price direction remains dependent on the outcome of OPEC’s meeting on June 21st, whether expected LNG deliveries reach European ports or are diverted by better prices elsewhere and the global reaction to US Steel import tariffs. Price volatility is likely with further increases possible.
Non-energy costs: On the electricity side organisations will see further increases in pass through costs from both government and industry infrastructure providers in the coming months as Electricity Market Reform (EMR),Capacity Market and Energy Intensive Industries (EII) charges are ramped up.
A copy of our detailed market report is available: Eneco Market Information Early June 2018
Detailed historical gas and electricity prices from 2009 to date are available here: Eneco Gas and Electricity Pricing Trends Sept 2009 to early June 2018
A copy of our environmental charges and Climate Change Levy rates from 2012 to date: Environmental and Climate Change Levy 25-5-18
