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29/09 Energy Statistics
Energy StatisticsDEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (Reference P/2007/062) issued by The Government News Network on 27 September 2007
STATISTICAL PRESS RELEASE
Energy Trends and Quarterly Energy Prices publications are published today 27 September by the Department for Business, Enterprise & Regulatory Reform. Energy Trends covers statistics on energy production and consumption, in total and by fuel, and provides an analysis of the year on year changes. The September edition of Energy Trends also includes articles on: "Renewable energy in Scotland, Wales, Northern Ireland and the regions of England in 2006", "CHP in Scotland, Wales, Northern Ireland and the regions of England in 2006", "Changes in electricity generation and usage" and "Easier access to 2005 small area electricity and gas data". Quarterly Energy Prices covers prices to domestic and industrial consumers, prices of oil products and comparisons of international fuel prices.
TOTAL ENERGY: QUARTER 2 2007
Total Energy - consumption1
(1) Total inland consumption on a primary fuel input basis (seasonally adjusted and temperature corrected annual rates).
* Total production in the second quarter of 2007 at 46.5 million tonnes of oil equivalent was 5.4 per cent lower than in the second quarter of 2006.
* Final energy consumption in the second quarter of 2007 was 4.0 per cent lower than in the second quarter of 2006.
When examining seasonally adjusted and temperature corrected annualised rates:
* Total inland consumption on a primary fuel input basis was 227.7 million tonnes of oil equivalent in the second quarter of 2007, 1.2 per cent lower than the same quarter in 2006.
* Between the second quarters of 2006 and 2007 coal and other solid fuel consumption fell by 10.4 per cent.
* Oil consumption rose by 3.1 per cent.
* Gas consumption rose by 4.6 per cent.
* Primary electricity consumption decreased by 22.6 per cent.
2007 Q2Million Percentage change on a year
tonnes of oil earlier
equivalent
Total production 46.5 -5.4 Total consumption
Unadjusted 50.9 -3.3
Seasonally adjusted 227.7 -1.2 and temperature
corrected - annual rate
COAL: QUARTER 2 2007
Coal production and imports
2007 Q2Thousand Percentage change on a year
tonnes earlier
Coal production 4,408 -11.0
Coal imports 9,943 -16.7
Coal demand 12,416 -12.7
- Power 9,917 -15.1 stations
- Coke ovens 1,497 +1.3
- Final users 507 -14.4
* Provisional figures for the second quarter of 2007 show that coal production (including an estimate for slurry) was 11.0 per cent down on the second quarter of 2006 at 4.4 million tonnes. The decrease was the product of a fall of 19.8 per cent in deep mined production and a decrease of 2.4 per cent in opencast production. However both deep mined and opencast production were higher than in the first quarter of 2007.
* Imports of coal in the second quarter of 2007 were 16.7 per cent lower than in the second quarter of 2006 at 9.9 million tonnes.
* Demand for coal in the second quarter of 2007, at 12.4 million tonnes, was 12.7 per cent lower than in the second quarter of 2006. Consumption by electricity generators was down by 15.1 per cent to 9.9 million tonnes.
* Coal stocks at the end of the second quarter of 2007 showed a rise of 10.8 per cent from the second quarter of 2006 to stand at 16.9 million tonnes, up 1.6 million tonnes. Provisionally, by the end of July 2007 coal stocks had risen further to 17.4 million tonnes.
OIL: QUARTER 2 2007
Demand for transport fuels
2007 Q2Thousand tonnes Percentage change on a
year earlier
Oil production 19,688 +2.8
Refinery 21,242 +1.2 throughput
Net exports 790 -
Primary demand 19,591 -1.3
- Motor spirit 4,643 +7.0
- DERV fuel 5,434 +8.8
- Aviation 3,082 -7.1 turbine fuel
* Total indigenous UK production of crude oil and NGLs in the second quarter of 2007 increased by 2.8 per cent compared with 2006 to 19.7 million tonnes. Six new fields started production in the first six months of 2007, including the very large Buzzard field.
* The UK was a net exporter of oil and oil products in the second quarter of 2007 by 0.8 million tonnes. In the same period of 2006 the UK was a net importer by 1.6 million tonnes. The primary reason for the change from net importer to net exporter was the additional crude oil production from the six new fields mentioned above.
* Overall primary demand for oil products in the second quarter of 2007 was 1.3 per cent lower than last year.
* Motor spirit deliveries rose by 7.0 per cent. Deliveries of Derv fuel increased by 8.8 per cent. Deliveries of aviation turbine fuel fell by 7.1 per cent.
GAS: QUARTER 2 2007
Production of natural gas
2007Q2TWh Percentage change on a year
earlier
Gas production 206.06 -9.6
Gas imports 64.73 +84.3
Gas exports 39.80 +11.8
Gas demand 224.58 +1.3
- Electricity 93.87 +26.5 generation
- Domestic 57.11 -13.4
* Total indigenous UK production of natural gas in the second quarter of 2007 was 9.6 per cent lower than in the corresponding quarter a year earlier.
* Compared with the second quarter of 2006, exports and imports of natural gas increased by 11.8 and 84.3 per cent respectively. Net imports of gas were 24.9 TWh whereas the UK was an exporter in the second quarter of 2006.
* Demand for gas in the second quarter of 2007 was 1.3 per cent higher than the level in the second quarter of 2006.
* Gas use for electricity generation was 26.5 per cent higher than in the second quarter of 2006, with lower gas prices and lower nuclear output encouraging gas use.
* Provisionally, consumption in the domestic sector fell by 13.4 per cent. In the industrial sector gas sales were provisionally 12.6 per cent lower than in the second quarter of 2006, while consumption by other final users fell by 13.1 per cent.
ELECTRICITY: QUARTER 2 2007
Fuel used for electricity generation
* Fuel used by generators in the second quarter of 2007 was, in total, 3.1 per cent down on the second quarter of 2006.
* Gas use was 26.3 per cent up on the second quarter of 2006. Coal use during the quarter was 15.1 per cent lower than a year earlier and nuclear sources 24.6 per cent lower.
* Total electricity supplied by all generators in the second quarter of 2007 was 0.2 per cent lower than a year earlier (-0.2 TWh).
* Final consumption of electricity fell by 0.1 per cent in the second quarter of 2007. Industrial use of electricity was 1.9 per cent higher, domestic use fell by 1.7 per cent and consumption by other final users (including transport) fell by 0.8 per cent.
2007 Q2T Wh Percentage change on a year earlier
Electricity supplied from Coal 23.91 -16.8
Nuclear 13.73 -24.6
Gas 42.91 +26.8 to
Industry 28.94 +1.9
Domestic 25.23 -1.7
Other final 25.78 -0.8 consumers
PRICES: QUARTER 2 2007
Some of the main points of interest in the September 2007 edition of the Quarterly Energy Prices publication are summarised below. Further explanation, and analyses are given in the publication.
Industrial fuel price indices in real terms including the Climate Change Levy
Fuel prices index in real 2007 Q2 Percentage change on a
terms (1), 1990=100 year earlier
Coal 74.8 +22.1
Heavy fuel oil 215.9 -4.6
Gas 90.3 -29.0
Electricity 97.3 -0.4
Total fuel 119.7 -28.7
(1) Deflated using the GDP implied deflator. Includes estimates of the average Climate Change Levy paid.
* Average industrial gas prices including and excluding CCL were 29.0 per cent lower in real terms in Q2 2007 compared to Q2 2006.
* Average industrial electricity prices including CCL were 0.4 per cent lower in real terms in Q2 2007 compared to Q2 2006, whilst prices excluding CCL were 0.2 per cent higher.
* Estimates suggest that, in July 2007, prices for industrial electricity and gas consumers were above the EU15 median, except for small users of both fuels, where prices were at or below the median.
* In mid September 2007, unleaded petrol was on average 94.6 pence per litre, an increase of 5.3 pence per litre compared to a year earlier.
* In mid September 2007, diesel was, on average, 96.3 pence per litre, 1.9 pence per litre higher than a year earlier.
Typical retail prices of road transport fuels
Retail prices of Mid September Percentage change on a
petroleum products 2007(1)Pence per year earlier
litre
Unleaded petrol (2) 94.6 +5.9
Diesel (2) 96.3 +2.0
(1) Prices are provisional estimates.
Fuel price indices in the domestic sector in real terms
* Provisional Q2 2007 data shows that the price paid for all fuel and light by household consumers has risen by 6.0 per cent in real terms between Q2 2006 and Q2 2007, but has fallen by 4.6 per cent between Q1 and Q2 2007.
* Domestic electricity prices, including VAT, in Q2 2007 were 7.0 per cent higher in real terms than in Q2 2006. However, prices were 3.2 per cent lower than in Q1 2007.
* The price of domestic gas rose by 8.8 per cent in real terms between Q2 2006 and Q2 2007, but fell 7.5 per cent between Q1 and Q2 2007.
* The price of heating oils fell by 10.3 per cent between Q2 2006 and Q2 2007 but rose by 5.5 per cent between Q1 and Q2 2007.
Retail price index fuel 2007Q2 Percentage change on a year
components in real terms (1) earlier 1990=100
Coal and smokeless fuels 117.4 +4.3
Gas 116.3 +27.0
Electricity 94.7 +17.3
Heating oils 140.4 +19.4
Total fuel and light 107.1 +20.9
(1) Deflated using the GDP implied deflator. The original source of the indices is ONS.
* Provisional 2007 figures for household bills suggest that an average standard credit electricity bill increased by £46 compared to 2006. Bills for direct debit and pre-payment customers both increased by £42.
* For gas, provisional 2007 bills suggest that an average standard credit bill rose by £79 compared to 2006. Bills for direct debit and pre-payment bills increased by £85 and £89 respectively.
* Combined gas and electricity standard credit bills have increased by 12.4 per cent in real terms and 15.4 per cent in cash terms between 2006 and 2007.
* Estimates suggest that, in July 2007, UK domestic electricity and gas prices for medium consumers including tax remained below the EU average.
Average annual domestic fuel bills (1)
2006 2007 Percentage Percentage change,
change, cash real terms (2)
terms
Gas (3) £474 £553 +16.5 +13.4
Electricity(4) £338 £384 +13.7 +10.7
Total (5) £812 £937 +15.4 +12.4
(1) Average annual bills for domestic customers paying on standard quarterly credit terms. Figures for other payment methods, e.g. direct debit, are presented in the Quarterly Energy Prices publication. Bills relate to the total bill received in the year, covering consumption from Q4 of the previous year to Q3 of the named year.
(2) To estimate the percentage change in real terms bills were deflated using the GDP (market prices) deflator.
(3) Gas bills are based on an annual consumption of 18,000 kWh.
(4) Electricity bills are based on an annual consumption of 3,300 kWh.
(5) The average total gas and electricity bill presented should be taken as broadly indicative only. It is not based on individual customers, but is simply the sum of the averages for electricity and gas.
RENEWABLES IN THE REGIONS
A special feature in the September 2007 Energy Trends looks at renewable energy in Scotland, Wales, Northern Ireland and the regions of England in 2006. The article covers all renewables including those that are not eligible for the Renewables Obligation. It updates a similar article that was published in September 2006. The main features of the latest statistics are:
* Scotland has greater renewables generating capacity than England, but England generates more electricity from renewables than Scotland.
* This is because biofuels based capacity (the most common source in England) is used more intensively than hydro and wind (which predominate in Scotland).
* In Wales wind generated 215 per cent more electricity than hydro, but England now generates more electricity from wind than Wales does. In 2006 Scotland generated twice as much electricity from wind as England did.
* In England the region with the largest generation is now the South East and this is 90 per cent from biofuels. The East remains the largest in terms of generating capacity. The North East and London have the lowest capacities, but if allowance is made for the smaller size of the North East in economic activity terms, it is third largest behind the East and the North West.
* In England the regions with the largest generation from wind in 2006 (including offshore wind with landfall in that region) were the East, the South East and the North West, while the same three regions had the largest generation from landfill gas.
* Yorkshire and the Humber and the South East are the largest generators from "other biofuels" because of the co-firing of biomass in coal fired power stations.
CHP IN THE REGIONS
A special feature in the September 2007 Energy Trends looks at CHP in Scotland, Wales, Northern Ireland and the regions of England in 2006. It updates a similar article that was published in September 2006. The main features of the latest statistics are:
Share of CHP electricity generation by area, 2006
* The largest contribution to electricity generation from CHP in 2006 came from Yorkshire and the Humber. Next largest are the North West and the South East. Nearly 60 per cent of the UK's CHP generation comes from these 3 regions.
* In terms of economic activity (as measured by Gross Value Added) Yorkshire and the Humber and the North East have the greatest regional shares of CHP electricity generation capacity with more than twice the density of the North West in third position.
* In terms of the share of heat generation from CHP, Scotland and the North West predominate. It is in these two regions that there is a significant presence of steam turbine CHP plant.
* While in the UK the increase in CHP capacity in the period 2004 to 2006 was only a modest 2 per cent, the West Midlands recorded a 13 per cent increase and the North East a 12 per cent increase. Nine new schemes opened in Northern Ireland in this period.
ISSUED BY:
Department for Business, Enterprise & Regulatory Reform
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18/09 GOVERNMENT CAN’T AFFORD TO TAKE RISKS WITH UK LABOUR MARKET
GOVERNMENT CAN’T AFFORD TO TAKE RISKS WITH UK LABOUR MARKET12/09/2007
BCC NEWS RELEASE
MIGRANT WORKERS AND TEMP FLEXIBILITY VITAL TO ECONOMIC SUCCESS, WHILE UNION DEMANDS COULD HIT COUNTRY HARD
On the closing day of the TUC Conference in Brighton, British Chamber of Commerce Director General David Frost is calling on the Government to fulfil it’s commitment to a highly skilled and flexible workforce.
David Frost said:
“The Prime Minister rightly put the need for a highly skilled UK workforce at the heart of his speech to the TUC, and British business will offer its whole hearted support to this agenda. It can’t be ignored though those employers finding it hard to recruit British workers with the skills and work ethic their businesses need have to rely on the talents of migrant workers. Alongside efforts to better equip British workers, the Government should think very carefully before imposing restrictions discouraging migrant workers from coming to our country.
The flexibility offered by temporary agency workers is also important to the continued success of business, and the Government should stand firm in resisting the imposition of the EU Agency Workers Directive. The increased regulation this brings would significantly increase the cost and bureaucracy of using temps, spelling disaster for the country’s long term unemployed by shutting off a valuable route into the labour market. A snapshot survey has already revealed that 86% of BCC members would be less likely to employ temps if they were subject to the restrictions of the directive. ”
David Frost also warned against the economic dangers of unreasonable public sector union demands and strike action:
“The sabre rattling of union leaders is as dangerous as it is unjustified. Mass strike action would hit the British economy hard, particularly the thousands of small firms that rely on local services to do business. It’s already estimated that each postal strike alone costs small firms £2.5million.
These are not the ‘fat cat businessmen’ that the unions would have as believe make up the business community. They are people working hard to earn a livelihood and create employment – without the many benefits enjoyed by public sector workers. The vast majority of people working in the private sector can only dream of the types of pensions and salary protection on offer to state employees, and would suffer from the economic havoc brought if union demands are met.
Public sector union leaders think hard about their unreasonable demands, and consider the impact irresponsible strike action will have on the country.”
05/07 SURGE IN STERLING
SURGE IN STERLING HIGHLIGHTS YET AGAIN THE RISK OF AGGRESSIVE INTEREST RATE INCREASESCommenting on the rise in sterling to close to the $2 level
David Kern, economic adviser to the British Chambers of Commerce, said:
“The renewed surge in sterling, even if temporary, highlights yet again the risks to British business of aggressive interest rate increases.
“We appreciate that the MPC has to control inflation but a stronger pound performs a similar role in dampening economic activity. We urge again the MPC to be cautious and take account of the long term impact of its actions on business.”