Energy Update from Radius - June 2024

Energy Update from Radius Featuring:

• Key Points
• Energy Prices Commentary – June 2024
• UK NBP Front month Natural Gas Future
• What does this mean for you?
• Supplier News

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​Key Points

• UK NBP trading at 81.35 from 83.09 at start of month
• Equates to supplier rates of approx. 28c per kWh for 24 hour meters, or Summer Day rates of 25.36 c/kWh for larger DG6 clients
• UK election on 4th July could potentially add some volatility to existing market conditions
• Radius have exclusive offer from Pinergy to provide clients 100% green energy from local assets in a supplier PPA previously only available to larger users

 
 
Energy Prices Commentary – June 2024
 
Energy prices finished the month very close to where we began.  A small decrease saw the August 24 NBP future finish at 81.35, having begun the month trading at 83.09 ppt.  The high level of volatility seen at the beginning of the month has waned as the unplanned outages at Norwegian gas fields have come back online.  The unseasonably cold weather during the month of June has kept demand high, whilst recent increases in levels of wind generated energy has ensured the increased demand has not sent prices into an upward spiral.  EU gas storage is still at a healthy 76.2% full, however with no LNG vessels due to arrive in the UK in the next few weeks any increase in demand could lead to reserves being used. 
 
UK NBP Front month Natural Gas Future

What does this mean for you?
 
As you can see from the graph above, gas prices continue to operate at levels which are close to the lowest they have been for the last 2 years.  We have seen this reflected in the prices suppliers are offering as fixed rate contracts have come down steadily as we recover from the energy crisis, with prices now regularly below 30 cent per kWh.  We believe it is now a very attractive time to look at fixing your energy prices for a longer period, taking advantage of the downturn in prices.  There is the potential for prices to come down further, but the risk of a 200-300% spike if tensions in the Middle East, and with Russia, increase make it a prudent decision to lock in savings when available.  We do, however, understand that every business will have their own risk appetite and hedging strategy, which is why we take a bespoke approach to each and every contract.  Variable rate and tracker products are also available should you prefer, alongside more innovative strategies for mitigating risk.  If you would like to discuss your options, do not hesitate to get in touch.
 
 
Supplier news
 
Pinergy have offered Radius customers an exclusive deal that ensures that every business, irrespective of its size or consumption levels can avail of 100% green energy produced from assets on the island of Ireland.  Previously, these Power Purchase Agreements (PPA’s) have only been available to large users who agree to buy the full load of energy direct from the wind/solar farm.  This offering allows users to pinpoint exactly, with co-ordinates, where their energy is sourced, allowing them to market the fact they are serious about sustainability.  The deal also comes with the option of a smart meter installation to help clients reduce their consumption leading to lower energy bills over the long term.  For more information, please get in touch.

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