Mark Johnson, a director of Torse Ltd, is interviewed by Maria Loreto Urbina regarding the current energy market in the UK with regards to pricing fluctuation, long term contracts and advice for existing and new clients wishing to renew their energy contracts
Here is a brief summary of issues discussed
Visit the Torse YouTube Channel
What is E.on up to at the moment in the SME commercial energy market? Is there something sinister about E.on’s current behaviour? What’s it all about?
Over recent months E.on’s SME division have been sending out documentation to Brokers, Consultancies and sales agencies for signature relating to a ‘Code of Practice’ and a new ‘updated E.on contract’. Despite the increased efforts of Ofgem and the government to improve market liquidity [Big 6 forced to sell 25% of generation on wholesale market], some energy companies are still making efforts to erode the independent status of third parties; is this to be considered anti-competitive behaviour?
With 2011 proving to be a particularly turbulent year for worldwide energy prices, heads are now turning to what to expect in 2012.
With civil unrest in the Middle East unlikely to ease, mixed with increased export capabilities, wholesale prices are expected to fluctuate heavily. European leaders look likely to impose an oil embargo on Iran, with Tehran warning of rising tensions and likely retaliation.
Npower’s continued inability to contribute to the coffers of parent RWE looks likely to move them up the cost saving and asset disposal list.
As RWE struggle to come to grips with the phase-out of nuclear energy in 2022, net debt of over £24 billion, a less than anticipated return on a recent share sale, loss-making long-term gas deals and its failure to setup a joint venture with Gazprom for the takeover of all European generation including the UK, it doesn’t bode well.