ICIS, the independent authority on global energy markets, has launched the ICIS Power Index (IPI), which provides UK energy users, commercial buyers and policy-makers with a simple way to see wholesale energy price trends that impact the retail market.
The index delivers insight into the complex world of wholesale energy prices for both households and industrial electricity consumers. It is updated every working day and is freely available from the ICIS website.
ICIS is an independent price reporting agency focusing on global energy, petrochemical and fertilizer markets which has covered the complex UK electricity market for nearly 20 years. Every day, ICIS assess electricity contracts for more than 40 different delivery periods in the UK market alone. The analysis and data produced is widely used as a reference price in energy contracts.
With a global staff of more than 800, ICIS – part of the Reed Elsevier group – has employees based in Houston, Washington, New York, London, Montpellier, Dusseldorf, Karlsruhe, Milan, Mumbai, Singapore, Guangzhou, Beijing, Shanghai, Yantai, Tokyo and Perth
“The IPI will give energy users, buyers and policy-makers an independent and reliable source from which to assess the impact of UK wholesale electricity prices,” said Zoe Double, Head of Power at ICIS.
The IPI is based on daily trade data for a whole year of delivery, which helps prevent confusion caused by seasonal price trends. The index reflects what is really going on in the market on any given day as it is based on real activity on two of the most widely traded contracts.
“We’re very pleased to be able to provide this new level of transparency into complex wholesale energy prices,” Zoe continues. “Energy markets have come under increased scrutiny, and the aim of ICIS is to provide a clear wholesale price reference, so that debate can centre instead around the real policy issues.”
The UK electricity market is complex – every day, ICIS assesses electricity contracts for more than 40 different delivery periods for the UK market alone. The IPI gives a simple reference, and ICIS will provide its expert, detailed analysis of the index to highlight industry trends on a quarterly basis.
Angela Knight, Chief Executive, Energy UK – which represents major UK electricity generators – commented: “Energy UK, and its members, has been very keen to see accurate, high-quality information readily and easily available so that everyone – not just energy insiders –can see what is going on in the electricity market. The ICIS Power Index is a great step forward in helping dispel myths about energy prices.”
Nigel Cornwall, Managing Director, Cornwall Energy, said: “Wholesale price movements are key information for our members, and the new ICIS Power Index will help bring clarity to what’s going on.”
And Jeremy Nicholson, Director, UK Energy Intensive Users Group, added: “This is a meaningful index that will help consumers understand the costs their suppliers are passing on. It’s a positive move for transparency – the more information out there, the better.”