Parts 1 to 4 are some of the most important variables but it’s by no means an exhaustive list. Other important factors will all play their part e.g:
- The global economy
- New gas and oil new technology for extracting oil/gas e.g. Steam extraction of Canadian Oil Sands
- Unrest in the Middle East
- Political decisions on nuclear reactors
- The uptake of renewable sources
- New & improving renewable technology
So in summary:
All in all you can see how difficult it is to predict what the energy will do in the coming weeks and months, never mind years! Can Shale Gas reshape the global energy industry as many predict or will it be hindered by environmental, safety and technical issues? What progress will the EMR bring – simplification, stable costs and a clear vision for the future, or the opposite? Will promised storage materialise to stabilise UK prices? …And of course, don’t forget the weather!
Confusing as some of these issues may seem at first glance; these are some of the many factors that need to be taken into consideration when implementing an energy contract. When to ‘lock in’ and how long for are vital questions in terms of costs and budgeting. No-one can state with accuracy exactly what the market will do, however by taking an informed, unbiased view, and with careful monitoring, risks can be reduced and savings maximised.