Business Energy Market Update: August 2024

The month of July saw mostly sideways trading in the electricity wholesale market as we saw typical price drivers influence the market throughout the month with only a marginal increase in forward contracts out to the end of the year.

The Gas market was bearish for the most part but unfortunately rose sharply in the last week of the month recovering all losses as the market reacted to a combination of surging demand in East Asia and renewed US tropical cyclone risks. Also, reports of extreme heat in Japan (one of the world’s largest LNG importers) could mean power operators in the region are willing to outbid the European market, pulling even more spot cargoes away from the region.

Details of how Labour’s Great British Energy will begin to deliver greener cheaper energy have started to emerge with the announcement the Crown Estate will lease out more of the seabed for future offshore wind developments. In addition, the Labour government has widened the powers of the Crown Estate with a new Crown Bill expanding its investment powers and granting it borrowing capabilities which it is hoped will bring forward existing projects and increase turbine numbers.

Elsewhere, Ed Miliband secretary of state for energy security and net zero wasted little time in approving the controversial 2,500 acre Sunnica Solar Farm which had languished in the planning stage for more than 5 years. The project may still come up against stiff opposition from locals but now looks set to break ground and will supply energy for 172,000 homes once completed.

Planning restrictions have long been a major obstacle energy projects of all sizes as developers face objections from residents local to the project itself and also those along the path of any infrastructure upgrades that may also be needed to transport the power to where it is needed. For some, Ed Miliband’s intervention will be seen as a welcome intrusion from a government committed to tackling climate change and reducing our independence on foreign energy imports but to others, the damage to our countryside is too high a price to pay.

If you have any questions about your energy or need advice about any utilities, the team at Clear Utility is on hand to help with Electricity, Gas, Water and Telecoms. Give us a call on 01327601122.