It seems as if the power price got a little too comfortable on it's 'high heels' and the non-existent cold-snap has caused it to trip...

If you are tracking and trading wholesale energy you'll be aware that Summer 2014 is trading around £46.5/MWh.

A couple of interesting points: (1) in just December it was around £50/MWh (10% higher) (2) from September 2012 to April 2013 it averaged £52/MWh

So what's causing the price to move so bearishly? Well you may be surprised to know that weather is still a big driver- you'll be aware of how wet it's been but perhaps not how mild? Average temperatures have meant we've not tested the UK heating system and we've ramped up a nice buffer of storage (unlike us! black-out risks are the norm!).

Add in shale developments.. increased support for this production method (including support for reduced rates for businesses of this kind) and you start to see something else too.

Wholesale Energy prices further out on the curve (2016) have started to fall below the 2015 levels.

Taking all of this into account your purchasing policy should be kicking and screaming to take advantage of some of these movements and the favourable market conditions....

In the very least purchasing some of your requirements now will not leave you having a difficult conversation with your FD.

I'll ask one of our energy traders to take a view on this when he get's to the desk this morning...see below for his view shortly...