Tough financial forces and bad summer weather appear to be determined to try and take charge of the wholesale power supply market. Prices tumbled throughout the middle of June to unique lows. Annual gas prices are today 15% lower than the same time last year, whilst annual energy costs fell to a two-year low plus are 22% down year-on-year. Falling energy prices dragged yearly spark spreads down 7% to £3.4/MWh, plus even which reliable stalwart coal is having a hard time of points, with slipping prices buffering the fall of dark spreads somewhat to a £17.9/MWh premium to spark spreads. So what's been setting off these cost crashes? Well, concerns regarding debt in the Eurozone countries hasn't helped. Greece lurches from crisis to crisis plus even the election of a new government is doing small to allay worries about its long-term future. However it's slowing financial growth inside the US and China which has actually forced global vitality markets downwards. Brent Ameratex Crude Oil tumbled to $97.6/bl, its lowest level because January 2011, plus yearly API coal dropped to a hot 20-month low of $95.4/t. But, all of the is advantageous news for customers. While we will be missing out on which 'BBQ summer' the forecasters guaranteed you, both domestic and commercial end-users have seen power prices drop in real terms. A fall inside inflation has furthermore aided to stabilise the retail market, yet the big difference has been at the pumps, where motorists have finally started to see the numbers found on the forecourts going down instead of up. This, combined with lower electricity plus gas bills, has provided the British economy a brief respite, during that it has a chance to drive up creation and keep the fragile heart of UK PLC beating for a while longer. Ironically, it's been the biomass marketplace that has held the fort. Despite biomass contracts dropping, with prices for 2013 down 1% to £88.5/t, costs are nonetheless around 6% higher than this time last year. They've recovered from their four-year low plus are at their highest level for five months. This boost has been helped in no little measure with all the approval of the plans for a 40MW staw-fuelled biomass plant inside Snetterton, Norfolk, that have finally been provided the go-ahead. The real headline grabber throughout June and into July has been the atrocious weather the UK has experienced. Lower than average June temperatures plus storm following storm has resulted in a rise in UK gas demand. Supply peaked at 223.1mcm on 11th June, in the center of the bad weather. Industry watchers believe which the unseasonably bad weather has encouraged countless persons to do anything they wouldn't usually do inside June - they turned the heating up. The outcome was which though the national system decreased 0.1%, the territorial program climbed 2.2%. To date, summer demand (calculated from April 1st) was down 7.8% on the national program however up a staggering 31.1% found on the regional program, compared to the same time last year. What this indicates is the fact that while gas demand for energy generation is down year-on- year, consumption by households and little companies has risen. This signifies that gas expenditure is acting because a barometer for the productiveness of the UK economy and whilst the big consumers can be trying, homes plus businesses are continuing to ride out the worst of the financial storm, putting a more positive face on what has been a difficult few months. How costs might fare inside the upcoming few weeks depends 3 things - the resolution (or otherwise) of the Eurozone crisis, and the financial condition of the US and China. If they commence to wobble we can see prices start to climb back up again.