In 2004, UK wholesale gas and power prices reached record highs along with unprecedented levels of volatility. These wholesale market conditions filtered through to the retail market and made life more difficult for energy buyers as they grappled not only with high prices but also with more complex supply negotiations arising from the volatile market conditions.

• insight into the reasons behind increased prices and volatility in UK energy markets
• understanding of how these factors are likely to influence the wholesale market in the longer term
• advice about steps that UK energy buyers could take to mitigate the impact of these market changes


Highlights



All parties agreed that the dominating events in the energy market during 2004 were the dramatic price rises and the associated increase in volatility, although not all were in agreement about their origin.





The structural wholesale position of each supplier will have an important effect upon their ability to deal with future wholesale market movements. Suppliers that are short in either gas or power will be much more exposed to fluctuations in wholesale energy prices.





The UK market will continue to be influenced strongly in the short term by volatility caused by gas supply constraints and in the longer term by environmental and EU related issues.



Reasons to Purchase


• Understand how the wholesale market is influencing the buying strategies of major energy users
• Identify the wholesale position of each supplier and how this impacts their likely future strategy
• Explore how future energy purchasing strategy will evolve in light of wholesale market movements