Quarterly energy prices and trends Q2-2016

Post date: Oct 25, 2016 8:35:45 AM

The Department for Business, Energy and Industrial Strategy (BEIS) released their quarterly update for energy prices and trends in energy production and consumption at the end of September.

Key points for industrial users:

• • Average prices including CCL for gas fell by 22% and for electricity by 5.1% between Q2-15 and Q2-16

  • Petrol prices are at about the same price they were a year ago while diesel is slightly more expensive

  • Electricity and gas costs relative to the UK show very different patterns. Electricity costs in the UK are third highest in the EU-15, while gas prices are the fifth lowest in the EU-15.

So - questions to ask yourself:

• • Did you benefit from a decrease in prices in the last year and how does your reduction compare to the market average?

  • Can you use gas instead of electricity in your business, for example by shifting to Combined Heat and Power (CHP)?

Here is the trend chart from the report

Bear in mind that this data is several months out of date. Prices have rebounded since the middle of the year and are now 45-50% higher than their lows at the start of the year.

Typically - gas and oil markets move in the same direction, although sometimes with a lag. So trends in the last few months are more in line with the chart below.

Prices in the UK for energy are higher than in most of Europe. It is worth keeping an eye on how the exchange rate could affect prices given the volatility in Euro/Sterling following the Brexit vote in the UK

For more information and up to date charts on gas, oil and the exchange rate, take a look at the market intelligence page.