Page 19 - BOSS Today Issue 59

ENERGY UPDATE BOSS Today #59

Power to

the People

BOSS’S ENERGY PARTNER, INENCO, PROVIDE THEIR MONTHLY UPDATE.

Seasonal gas prices fell alongside stronger renewable energy adjustment mechanism with potential
further in January output, limited both domestic heating implications for both climate policy and
The Summer ’24 contract, in line with demand and reliance on gas-fired power trade policy at the global level. Read more
other gas contracts, rose earlier in generation. Cold spells were short-term, about it here.
January due to colder weather, before whilst supply also remained steady,
falling later in the month. The market adding further downwards pressure. The British Industry Supercharger
took direction from colder than seasonal However, as the month progressed, roll-out to begin
average temperatures, driving gas-fired downwards momentum slowed, and The British Industry Supercharger was
generation demand. These gains were contracts proceeded to trade relatively announced by the UK Government in
quickly retraced as the market returned its flat. Downside was limited by key technical February 2023. Delivery details for the
focus to the overall bearish fundamental levels, which prompted buying activity, scheme are still being consulted on, but
picture. Supply stayed strong, with storage whilst conflict in the Middle East continued roll out is anticipated to begin this year. It
levels remaining high for this time of year, to unsettle the market. Meanwhile, a aims to reduce electricity costs for Energy
despite the cold spell earlier in the month. lower revision to temperature forecasts Intensive Industries (EIIs) by £20/MWh by
During January, companies continued for February and into March also provided 2025. Read more about it here.
to divert vessels around Africa’s Cape some support.
of Good Hope, adding nearly 10 days to
the journey for LNG cargoes to Northern The EU CBAM: what it could
Europe. Due to this, freight volume mean for your business
through the Red Sea fell by around 65%. The EU Carbon Border Adjustment
Overall, the Summer ’24 contract ended Mechanism (CBAM) is a new policy that
January 7% lower month-on-month. came into effect in October last year.
The EU CBAM is due to start in full on About Inenco
A comfortable supply and the 1st of January 2026; as such, we are Inenco are an energy management
demand picture weighed on in a transitional phase until the 31st consultant, offering information
power prices in January of December 2025. During this phase, and insight, and are able to provide
Seasonal power contracts fell from businesses will be required to report on the BOSS members with an end-to-
December’s close. In the first trading carbon emissions of their imported goods, end utility solution. For further
session of the year, the Summer ’24 but will not yet have to pay any charges. information on how Inenco can
contract fell by almost 12%, as market The CBAM builds upon existing efforts to support your business, please
participants re-evaluated the supply address carbon leakage and complements contact Jack Massey at
demand picture on the return from the the EU Emissions Trading System (ETS). Jack@bossfereation.co.uk
Christmas break. Power prices fell in line It represents a significant step forward
with the gas market, as milder weather, by implementing a broader carbon

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