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De ma nd Side Re spo nse Je r r y Hutton CHP Comme r c ial - - PowerPoint PPT Presentation
De ma nd Side Re spo nse Je r r y Hutton CHP Comme r c ial - - PowerPoint PPT Presentation
De ma nd Side Re spo nse Je r r y Hutton CHP Comme r c ial Manage r Br itish Sugar today So le pro c e sso r o f UK sug a r b e e t c ro p Six fa c to rie s, a ll with CHP pla nts, fo ur o f whic h use na tura l g a s a s a fue l
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Why ar e gas pr ic e s so high?
“T he ma rke t is no t wo rking ” “T he o lig o po listic b e ha vio ur o f the pro duc e rs” “T he ina ppro pria te linka g e to o il pro duc ts”
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Why ar e gas pr ic e s so high?
“T he ma rke t is no t wo rking ” “T he o lig o po listic b e ha vio ur o f the pro duc e rs” “T he ina ppro pria te linka g e to o il pro duc ts”
Be c ause de mand is not pr ic e se nsitive ?
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Nor mal De mand Cur ve
Pric e Qua ntity
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Mar ke t E quilibr ium
Pric e Qua ntity
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Impac t of Ine lastic De mand
Pric e Qua ntity
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Why ar e we so inse nsitive to pr ic e ?
We ha ve e xpe rie nc e d a lo ng pe rio d o f lo w pric e s until re la tive ly re c e ntly We ha ve ma de o ur inve stme nt de c isio ns b a se d o n 20p/ the rm g a s We a re no t use d to c o ping with this le ve l o f vo la tility We ha ve no t pla nne d fo r hig h pric e s We ha ve no t a llo c a te d the re so urc e s to de a l with the c urre nt situa tio n
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What should we be doing?
Pla nning fo r hig he r pric e s!
- L
- ng T
e rm
- E
ne rg y E ffic ie nc y a nd I nve stme nt
- Me dium T
e rm
- E
ne rg y Ma na g e me nt
- Sho rt T
e rm
- Re spo nse o n the da y to syste m tig htne ss
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Br itish Sugar ’s Appr
- ac h
- T
e a m e sta b lishe d with e ne rg y c o st ma na g e me nt a s prime o b je c tive
- L
- ng T
e rm
- Alte rna tive F
ue ls inc luding re ne wa b le s
- E
ne rg y Sa ving Ca pita l I nve stme nt
- Me dium T
e rm
- Mo nito ring a nd T
a rg e ting
- Optimising Pro c e ss Pe rfo rma nc e vs. E
ne rg y
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R e sponse on the Day
Daily Gas Price
10.00 30.00 50.00 70.00 90.00 110.00 130.00 Nov Dec Jan Feb Mar Apr May p/therm Day Ahead Price 2004/05
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Impac t of Pr ic e Spike
T he a ve ra g e pric e No ve mb e r to Ma rc h wa s 33.75 p/ the rm T he a ve ra g e e xc luding nine hig he st pric e d da ys wa s 31.09 p/ the rm F
- r a b usine ss using 100,000 the rms pe r
da y tho se nine da ys c o st £682,625
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R e sponse on the Day
F ue l Switc hing
- Syste ms te ste d
- Alte rna tive fue l a va ila b le
- Re g ula to ry c o nstra ints
- Co ntra c tua l a rra ng e me nts
Sto p Pro duc tio n
- Co st I
mpa c t unde rsto o d
- Syste ms in pla c e
- Co ntra c tua l a rra ng e me nts
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R e sponse on the Day
F ue l Switc hing
- Syste ms te ste d
- Alte rna tive fue l a va ila b le
- Re g ula to ry c o nstra ints
- Co ntra c tua l a rra ng e me nts
Sto p Pro duc tio n
- Co st I
mpa c t unde rsto o d
- Syste ms in pla c e
- Co ntra c tua l a rra ng e me nts
Yo u ma y ha ve to do it a nywa y in c a se o f a g a s e me rg e nc y!
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