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.
The Deptartment of Energy and Climate Change subsidies for Renewable Energy have been very successful, the majority of the Feed-In tariff support going to Solar Energy Schemes, almost too successful perhaps.
SSE, the UKs second largest energy generator, has recently announced plans to introduce a new, transparent approach to the management of its electricity supply. The innovative solution will see SSE auction all of its energy generated and demand purchased on the day ahead market.