High industrial energy costs are here to stay

Green energies and increased wholesale prices are making a complicated environment for European energy buyers, and it’s only going to get worse, so say gas and electricity brokers EnergyQuote. EnergyQuote […]

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By Tom Gibson

Green energies and increased wholesale prices are making a complicated environment for European energy buyers, and it’s only going to get worse, so say gas and electricity brokers EnergyQuote.

EnergyQuote say growing environmental concerns are leading to rising end user energy costs. A company statement read: “The UK Governments’ decision to introduce a minimum price for carbon credits of £16 per tonne from 2013 rising to £30 per tonne by 2020 will further add to the green energy burden endured by industrial energy consumers.”

The brokers say that elevated gas prices are impacting on electricity prices, because gas contracts remain indexed to oil prices: “Ongoing volatility in global oil prices which remain at elevated levels, continues to exert an impact on gas buyers.”

However, EnergyQuote say that despite the ongoing price rises caused by both market fundamentals and the growing green energy burden, opportunities are available for industrial energy buyers to minimize the effect of energy market volatility. They added: “Tools such as fixed or flexible price contracts along with energy fund purchasing can help energy buyers of all types and size mitigate the impact of continued price rises.”

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