Wednesday 21 November 2018

Energy prices and risks ‘will continue to rise’

Energy customers are going to see a continued increase in both prices and risks due to the uncertain state of the world today.

That's the verdict from CEO of TEAM Energy Simon Miles, who spoke to ELN at the firm's Management Conference 2018 in Milton Keynes yesterday.

He said he predicted a £20 per MWh increase in wholesale prices, which amounts to a 40% rise.

Mr Miles suggested the gas sector was also likely to face similar challenges, with non-commodity costs expected to jump up by 5% a year.

He said issues such as climate change, Brexit and extreme politics in the US and Russia are contributing to market volatility, as well as the UK's increased reliance on unpredictable wind energy and natural gas, the latter of which is in reduced supply following the Rough Storage closure.

He said using data to identify and target areas of potential saving was a vital tool in helping to mitigate against such dangers.