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The edging up of Oil prices seems to be the fillip required by the Energy Industry to get on board with both UK Wholesale Electricity and gas prices edging up. Although last year’s July high of over $150 a barrel descended below $40 in December, prices this first quarter of 2009 seem to have steadied above $50. Now that the initial reaction to ‘The Recession’ has settled somewhat, we are back now to the more traditional political and economic machinations against the new globally depressed context.

Whilst OPEC (Organization of the Petroleum Exporting Countries) has previously set aspirations for the $100 barrel, their latest monthly ‘Oil Market Report’ (March 09), suggests an ongoing acknowledgement of the change in the world markets, and are pursuing the balance between returns for their members against the needs of the Global Consumers in a recession.

It certainly looks that although the upward pressures are still pushing hard (don’t expect the Financial Markets to stop talking up prices this year), it’s not so easy if no one is going to buy. In the Mid market Business market some suppliers are seemingly reluctant to offer longer term fixed rate deals, perhaps anticipating rates going up this year.

Make sure you read those Terms & Conditions or at least make sure that whoever is arranging your energy contracts ascertains exactly what is being signed. Whilst there are significant government backed efforts to support the pressures on Businesses at the moment, not everyone is being quite so supportive. Apparently the notion of ‘Limited Company’ status doesn’t wash with business energy supplier Scottish Power.

the director who signs the Agreement on your behalf…shall irrevocably and unconditionally be jointly and severally liable for any and all payments…’ so make sure the business pays those bills!

Even if the business is paying the bills, there are potentially draconian additional requirements.

at our (Scottish Power) sole discretion we may also require the said director within 7 days of request, to provide us with a personal guarantee…for an amount no greater than an amount equal to the previous quarter’s usage.

Let’s hope your energy costs aren’t large.

In the 21st century one of the greatest challenges we face is tackling that of climate change and global warming. It is clear that there is a link between our everyday activities and the increase in pollutants and greenhouse gas emissions. Therefore the issue of climate change is one which we have to tackle thanks to protocols and policies such as the KYOTO agreement and the UK Climate Change Bill. So ‘going green’ could be used as a stimulus to help the UK and potentially the world to pull itself out of the recession we are falling into.

Job Creation?

The electricity sector currently generates a huge amount of emissions with about 75% of UK power stations being coal or gas fired. In fact electricity generation accounts for over a third of the UK’s total carbon emissions. Therefore, if the UK were to migrate to using more alternative electricity generation methods such as wind, solar and hydro, emissions would fall dramatically. This transition could also produce a huge opportunity for job creation in the Low-carbon sector.

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Despite the current global economic predicament, the UK government are pushing forward with their ambitious targets for the reduction of greenhouse gases. The latest addition to the climate change policy in the UK will be the introduction of the Carbon Reduction Commitment (CRC), due to be introduced in 2010. All large users of electricity, (ones with an electricity bill of approximately £500,000 for the period January 1st 2008 – December 31st 2008) are CRC organisations and will eventually be required to take part in a cap and trade scheme, buying allowances to cover their emissions.  Where those who do well will be rewarded with bonus payments and those who do badly will suffer financial penalties.

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