INDEX REVEALS SMALL DIP IN ENERGY PRICES, BUT UPWARD TREND CONTINUES

The latest data from the Lorien Energy Index (LEI) reveals a slight drop in average energy costs for business users, with up to a 2% reduction in electricity, gas and gas oil commercial tariffs during the third quarter of 2012. Despite the quarterly dip however, prices over the last 12 months have increased by 6.2%. There is also evidence of mounting pressure in the energy supply market for further price increases, which would impact on commercial deals commencing in 2013. On a side note, price rises, such as EON’s recent 8.7%, have been observed in the domestic market with expectation of further increases by the big six during 2013

Director of Lorien Engineering Solutions Limited, Derek O’Neill said, “The quarter three figures confirm the recent modest reduction in energy costs for business users, and it is extremely welcome. However, the LEI at 4.26 shows energy costs to have risen by 6.2% over the last 12 months, which is well ahead of inflation. Energy prices remain a major concern for business users; price changes in gas and electricity tend to follow crude oil prices and with the recent Goldman Sachs forecast of $150/barrel in the summer, an increase of over 30%, 2013 could see another year of above inflation increases that business users are unlikely to avoid.”

The Lorien Energy Index monitors the overall cost of energy for business users, and it enables companies of all sizes to make sense of their current energy use and look at ways they can make savings in the future, by being energy efficient and utilising low carbon and renewable technologies to boost energy security.

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