We have seen trading in the UK markets volatile and with general upward movement in all forward prices but more noticeably seen in short to medium term months. The main factors in gains can be credited to increasing oil, coal and emission prices filtering through into UK gas and power prices.

Oil prices have peaked over $72 per barrel which is the highest level since November 2014 on the back of Middle East tensions amid the Western bombing of Syrian chemical weapons facilities, reduced fears on a US- China trade war, a weaker dollar and pound sterling and a OPEC lead production cuts tightening oil market supply.

Gas markets have reacted to the deteriorating relations between the West and Russia which have helped increase gas and coal prices, with Russia supplying one third of Europe’s gas and over 40% of its coal, fears of sanctions are in traders’ minds.

We have also seen the UK gas system under supplied with storage seeing withdrawals rather than injections and despite some LNG shipments docking last week this has not been enough to ease the panic for traders as temperatures have eased at some points to below seasonal norms putting further pressure on UK demand for gas and storage levels.

As we move into May it is predicted that temperatures should turn and we will see temperatures at seasonal norm levels or even above seasonal levels which should help ease gas storage levels, however May is maintenance season for a number of Norwegian pipelines so shutdowns will be seen so this may well negate this.

We are carefully monitoring the markets and political tensions both with Russia and Syria and the impact this may have on annual prices past October 2018 and your account manager will be in touch should action be required.

EON Communications on EII and Feed in Tariff

You will have received communication in the post from EON with regards to new Government Legislation relating to Energy Intensive Industries and Feed in Tariff. For EII, any qualifying business can claim 80% reduction in Renewable Obligation and Feed in Tariff charges however this is resulting in increased charges (to recover this cost) from all other users. As this is new Government legislation which has been passed since your contract was agreed, EON along with other suppliers are adding this to the contract rates or showing as a separate line on your invoices.

Black Start Charges

We have been successful in relation to these costs being refunded to customers and will be shortly starting the process or arranging the credits. Please note that these will be credited back with a description of "Loyalty Payment" however will be equal or rounded up to nearest pound to the original Black Start invoice amount

Mind Ultra Challenge

On 5th May, Stuart undertook the Isle of Wight Challenge to raise monies for MIND the Mental Health Charity. This was a tough Ultra Challenge in blistering heat. His next one is London to Brighton which he will be looking to undertake a 56km walk in approx. 12 hours.

We are asking customer to help us support Stuart and MIND with sponsorship. Over the summer, Stuart will be competing in 7 separate events. To Sponsor, please go to https://www.justgiving.com/fundraising/Energy-Network-Donations