May 17, 2020

OPEC may Raise Crude Supply Next Week

OPEC
Saudi Arabia
boost
supply
Admin
2 min
In an effort to bring crude oil prices down to help global economies, OPEC deliberates on increasing supply in the coming week
The Organization of Oil Producing Countries—More commonly known by the acronym “OPEC”—is deliberating on whether or not to inc...

 

The Organization of Oil Producing Countries—More commonly known by the acronym “OPEC”—is deliberating on whether or not to increase oil supply to the global market in an effort to bring price down.  The move would be the first time OPEC has increased supply since 2007, and would be an effort to aid struggling economies worldwide as oil price hikes have crippled growth. 

OPEC pumps more than one-third of the world’s crude oil supply and may up available supply by as much as 1.5 million barrels per day (bpd).  OPEC Ministers are scheduled to meet on June 8 to formally decide on what measures to take. 

"There is a need for an increase to replace the loss from Libya," the delegates said. "Oil prices are too high. $100 oil is scaring people."  Delegates stated that a rise of 1 million barrels per day is the likely outcome of the meeting.  “That would be calming for prices,” delegates added. 

 

SEE OTHER TOP STORIES IN THE WDM CONTENT NETWORK

CERAWeek 2011: Natural Gas Solution to Oil Shortfall

Streamlining Inspection of Oil & Gas Well Sites & Processing Facilities

Consensus Building for Arctic Offshore Oil & Gas Drilling

OPEC already upped supply by 1.4 million bpd in May to 26.23 million bpd.  Original targets for May were only intended to be 24.84 million bpd.

Since Saudi Arabia holds the majority of OPEC’s spare supply capacity, the burden of boosting supply would fall unto it.  Other OPEC nations, such as Iran, Venezuela and Libya would likely not increase supply according to OPEC insiders. 

Share article

Jul 26, 2021

Ofwat allows retailers to raise prices from April

Ofwat
Utilities
water
prices
Dominic Ellis
3 min
Ofwat confirms levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue

Retailers can recover a portion of excess bad debt by temporarily increasing prices from April 2022, according to an Ofwat statement.

The regulator confirmed its view that levels of bad debt costs across the business retail market are exceeding 2% of non-household revenue, thereby allowing "a temporary increase" in the maximum prices. Adjustments to price caps will apply for a minimum of two years to reduce the step changes in price that customers might experience.

Measures introduced since March 2020 to contain the spread of Covid-19 could lead to retailers facing higher levels of customer bad debt. Retailers’ abilities to respond to this are expected to be constrained by Ofwat strengthening protections for non-household customers during Covid-19 and the presence of price caps.  

In April last year, Ofwat committed to provide additional regulatory protection if bad debt costs across the market exceeded 2% of non-household revenue. 

Georgina Mills, Business Retail Market Director at Ofwat said: “These decisions aim to protect the interests of non-household customers in the short and longer term, including from the risk of systemic Retailer failure as the business retail market continues to feel the impacts of COVID-19. By implementing market-wide adjustments to price caps, we aim to minimise any additional costs for customers in the shorter term by promoting efficiency and supporting competition.”  

There are also three areas where Ofwat has not reached definitive conclusions and is seeking further evidence and views from stakeholders:   

  1. Pooling excess bad debt costs – Ofwat proposes that the recovery of excess bad debt costs is pooled across all non-household customers, via a uniform uplift to price caps. 
  2. Keeping open the option of not pursuing a true up – For example if outturn bad debt costs are not materially higher than the 2% threshold. 
  3. Undertaking the true up – If a 'true up' is required, Ofwat has set out how it expects this to work in practice. 

Further consultation on the proposed adjustments to REC price caps can be expected by December.

Anita Dougall, CEO and Founding Partner at Sagacity, said Ofwat’s decision comes hot on the heels of Ofgem’s price cap rise in April.

"While it’s great that regulators are helping the industry deal with bad debt in the wake of the pandemic, raising prices only treats the symptoms. Instead, water companies should head upstream, using customer data to identify and rectify the causes of bad debt, stop it at source and help prevent it from occurring in the first place," she said.

"While recouping costs is a must, water companies shouldn’t just rely on the regulator. Data can help companies segment customers, identify and assist customers that are struggling financially, avoiding penalising the entire customer in tackling the cause of the issue."

United Utilities picks up pipeline award

A race-against-time plumbing job to connect four huge water pipes into the large Haweswater Aqueduct in Cumbria saw United Utilities awarded Utility Project of the Year by Pipeline Industries Guild.

The Hallbank project, near Kendal, was completed within a tight eight-day deadline, in a storm and during the second COVID lockdown last November – and with three hours to spare. Principal construction manager John Dawson said the project helped boost the resilience of water supplies across the North West.

“I think what made us stand out was the scale, the use of future technology and the fact that we were really just one team, working collaboratively for a common goal," he said.

Camus Energy secures $16m funding

Camus Energy, which provides advanced grid management technology, has secured $16 million in a Series A round, led by Park West Asset Management and joined by Congruent VenturesWave Capital and other investors, including an investor-owned utility. Camus will leverage the operating capital to expand its grid management software platform to meet growing demand from utilities across North America.

As local utilities look to save money and increase their use of clean energy by tapping into low-cost and low-carbon local resources, Camus' grid management platform provides connectivity between the utility's operations team, its grid-connected equipment and customer devices.

Share article