UK power and gas: stakeholder views on future challenges and reaction to price volatility

Publication Date	May 2006
Publisher	Datamonitor
Product Type	Report
Pages	16
ISBN Number	not applicable
Product Code	DAT00464

Price

£1,475.00
approximately: $2,756 | €1,871

PDF

PRINT £1,525 ($2,849 | €1,934)

Order above formats by FAX

Summary

Introduction

This brief provides an analysis of the opinion of industry stakeholders on the challenges to the power and gas sector. Datamonitor completed surveys with three groups of industry stakeholders. The stakeholders were 516 major energy users ( buyers), 50 UK energy brokers and 61 energy sector employees, asking them about energy market issues such as security of supply and managing climate change.

Scope

analysis of views of energy sector stakeholders on security of supply, reducing CO2 emissions and increases in energy prices.
topical discussion on the potential challenges facing the market accompanied by quantitative ratings of potential solutions to these challenges.
discussion on the influence of new nuclear build on the energy sector and the ratings of stakeholders as to its potential.

Highlights

Massive challenges face the energy sector, not just prices and stakeholders believe the UK energy market needs to face up to its challenges.

Security of supply concerns are based on insufficient gas imports and nuclear.

The spectre of nuclear hangs over the UK energy sector, but do not disregard the value of nuclear in climate change.

Reasons to Purchase

understand opinion on issues surrounding security of supply and managing climate change.
gain a quantitative analysis on the ratings of different technologies in ensuring security of supply and managing climate change.
understand stakeholder opinion on the energy market and how they believe it has to change.

Content

Catalyst
Summary
Methodology
Analysis
- Massive challenges face the energy sector, not just prices
- Since 2004 rising prices have been a feature of the markets.
- Energy buyers are exposed to prices as they've been forced into short positions.
- The UK energy markets are in flux and there is talk of an "energy gap".
- Whatever happens the UK will face high energy prices.
- Security of supply concerns are based on insufficient gas imports and nuclear
- Security of supply is the energy markets' greatest challenge.
- Resolving security of supply issues may involve new nuclear build.
- The biggest MEUs believe nuclear build and gas imports are the solution.
- Nuclear has become embroiled in how the UK will meet emissions targets
- There is no consensus on the solution to volatile, high prices.
- Largest MEUs believe gas infrastructure will solve the problem of high prices.
- Existing strategies for dealing with climate change are in doubt.
- Nuclear build may be needed to manage UK emissions.
- The spectre of nuclear hangs over the UK energy sector
- The market has been undermined by the "maybe" on new nuclear.
- Stakeholders believe the energy market must face up to the question of nuclear.
Appendix
Further reading
- Ask the analyst
List of Tables
- Table 1: Selected comments from industry stakeholders
List of Figures
- Figure 1: Price Volatility: UK wholesale energy prices since 2004
- Figure 2: What action did you take in response to higher energy prices and volatility?
- Figure 3: UK primary energy balance [1800's to 2020].
- Figure 4: Question asked of 50 brokers in March 2006. Do you believe that energy prices will..?
- Figure 5: What do you believe to be the greatest challenge facing the UK power and gas sector?
- Figure 6: How likely is it that the following will help solve existing problems with UK energy markets?
- Figure 7: How likely is it that the following will help solve existing problems with UK energy markets?
- Figure 8: Can you please rate [1-5] the likelihood of the following actions actually reducing energy prices?
- Figure 9: Can you please rate [1-5] the likelihood of the following actions actually reducing energy prices?
- Figure 10: What do you believe to be the most suitable for managing climate change?
- Figure 11: What do you believe to be the most suitable for managing climate change?
- Figure 12: Three key questions: solving problem; reducing energy prices; managing climate change