Assured Energy Update – May 2021
Energy Buying Support for Independent Hoteliers
Energy market rates continue to rise at alarming rates. We advise hotels to review their current energy deals and clearly plan their management of this category over the coming year.
The volatility that has been observed over recent weeks is expected to continue as weather forecasts remain cold. As we progress into the latter parts of May, you would expect warmer weather to arrive. However, there is little confidence that this will happen as weather forecasts continue to remain unclear which is delaying the ability of shippers to inject into storage.
Carbon prices have continued push higher once again today following news that the UK government have announced steeper emissions targets for 2035. Now, a target is expected to be introduced to reduce 1990 emission levels by 78%, signifying an increase of 10% from the original. You would expect some drop off in prices as we progress throughout the summer, but currently due to the mass uncertainty with regards to how close we can stick to exit strategy for COVID-19 and constantly changing weather forecasts, prices are likely to hold onto their value and as a result it will not take much to launch prices higher. Therefore, it would be sensible to push through to secure contracts as soon as possible to mitigate any further risk through an increase in pricing.
Utility Trading Graphs