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Energy Trends and Quarterly Energy Prices


Energy Trends and Quarterly Energy Prices Q4 - 2012

UK Energy Statistics

Energy Trends and Quarterly Energy Prices are published by the Department of Energy & Climate Change (DECC) and OFGEM. This publication covers new data for the fourth quarter of 2012 and thus provisional annual data for 2012.

Main Points for the Fourth Quarter of 2012:

  • Total energy production was 14 per cent lower than in the fourth quarter of 2011. This decline in output was due to a significant fall in petroleum and gas production as a result of maintenance work and slowdowns on a number of fields. Net import dependency increased to 49 per cent.
  • Refinery production in the fourth quarter of 2012 was down 22 per cent compared with the same quarter a year earlier. This is the lowest recorded quarterly production figure and is due, in the main, to the closure of the Coryton refinery in Essex.
  • Total primary energy consumption for energy uses rose by 5.3 per cent. However, when adjusted to take account of weather differences between the fourth quarter of 2011 and the fourth quarter of 2012, primary energy consumption decreased by 0.7 per cent.
  • Of electricity generated in the fourth quarter of 2012, gas accounted for 25½ per cent (its lowest share in the last 14 years) due to high gas prices, whilst coal accounted for 42 per cent (its highest share in the last 14 years). Nuclear generation accounted for 17 per cent of total electricity generated in the fourth quarter of 2012, up from the 15 per cent share in the fourth quarter of 2011, due to increased availability.
  • Renewables’ share of electricity generation increased to a new record of 12½ per cent from the 11½ per cent share in the fourth quarter of 2011. Hydro generation decreased by 21 per cent on the fourth quarter of 2011 as a result of low rainfall in catchment areas. Over the same period, offshore wind generation increased by 38 per cent, whilst onshore wind generation decreased by 7½ per cent. Overall renewable generation was up 7½ per cent compared to the same quarter in 2011.

The key points from 2012 are:

  • Total energy production was 10½ per cent lower than in 2011, due to the significant falls in oil and gas production as a result of maintenance activity, as well as longer-term decline on the UK Continental Shelf.
  • Imports in 2012 were at a record high, with exports at their lowest level since 1989. Net import dependency rose to 43 per cent, the highest level since 1976.
  • Total primary energy consumption for energy uses rose by 2½ per cent from 2011. When adjusted to take account of weather differences between 2011 and 2012, primary consumption fell by under ½ per cent. Final energy consumption was 2 per cent higher than in 2011.
  • Of electricity generated in 2012, coal accounted for 39½ per cent (an increase of 9 percentage points on 2011) and gas 27½ per cent (a decrease of 13 percentage points on 2011), mainly due to high gas prices.
  • Renewables’ share of generation increased by 2 percentage points on 2011 to a record 11½ per cent.
  • Average annual household standard electricity bills (fixed consumption of 3,300 kWh per annum) across all payment types in 2012 are £26 higher than in 2011 (up 5.7 per cent to £479), and average gas bills (fixed consumption of 18,000 kWh per annum) across all payment types are £81 higher (up 11.3 per cent to £800).

Other highlights from 2012 include:

  • Oil production was 14½ per cent lower than in 2011, the lowest annual production volume since the current DECC reporting system began. Production of petroleum products was down 8½ per cent, with the closure of Coryton in July 2012 a key factor.
  • Natural gas production was 14 per cent lower than in 2011, and at its lowest level since 1985. Gas exports and imports were, respectively, 21½ per cent and 6½ per cent lower than in 2011.
  • Coal production was 10 per cent lower than in 2011. Coal imports were 37½ per cent higher. Generators’ demand for coal was higher by 31 per cent. Coal stocks were 18 per cent lower, and at a record low for the year end.
  • Within final energy consumption there were rises in all sectors except transport. Domestic consumption rose by 10 per cent due to the cooler weather in 2012, with temperatures in 2012 being 1.0 degrees cooler than 2011. On a seasonally and temperature adjusted basis final energy consumption was broadly unchanged.
  • Gas demand was 5½ per cent lower than in 2011, largely driven by the fall in gas demand for electricity generation. Electricity consumption was under ½ per cent lower than in 2011 and at its lowest level since 1998.
  • Electricity generated in 2012 fell by 1 per cent, from 367.8 TWh a year earlier to 363.2 TWh.
  • Low carbon electricity’s share of generation increased from 28 per cent in 2011 to 30½ per cent in 2012, due to higher renewables and nuclear generation.
  • Nuclear’s share of generation increased by 1 percentage point on 2011, to 19½ per cent of the total. Hydro generation decreased by 8 per cent on 2011 as a result of lower rainfall in the main hydro areas, whilst wind rose by 31½ per cent, of which offshore wind rose by 45½ per cent, due to increased capacity. Overall hydro and wind generation was 21 per cent higher than in 2011.
  • UK domestic gas and electricity prices are the lowest and fifth lowest in the EU15 respectively.
  • The price for coal paid by generators fell by 17 per cent, whilst the price for gas rose by 11½ per cent in 2012 compared to 2011.

Industrial Energy Prices 2012 Q4:

Q4 2012 Industrial Prices Chart

 Q4 2012 Industrial Prices Table

  • Average industrial gas prices, including CCL, were 8.1 per cent higher in real terms in Q4 2012 compared to Q4 2011, whilst prices excluding CCL were also 8.1 per cent higher.
  • Average industrial electricity prices were 3.0 per cent higher including CCL and 3.2 per cent higher excluding CCL, in real terms, in Q4 2012 compared to Q4 2011.
  • Average coal prices were 7.1 per cent lower in real terms including CCL and 7.5 per cent lower excluding CCL in Q4 2012 compared to Q4 2011. Heavy fuel oil prices were 1.2 per cent lower in real terms than a year ago.
  • For the period July to December 2012, prices for industrial electricity consumers including taxes were above the EU15 median for medium, large and extra large consumers and at the median for small consumers. UK industrial gas prices were the lowest in the EU15 for all sizebands of consumer including and excluding tax.

 

Q4 2012 Total Energy Chart

(1) Total inland consumption on a primary fuel input basis (seasonally adjusted and temperature corrected).

Q4 2012 Total Energy Table

Total energy production in 2012 was 122.9 million tonnes of oil equivalent, 10.3 per cent lower than in 2011, due to significant falls in the production of oil and gas.

When examining seasonally adjusted and temperature corrected annualised rates:

  • Total inland consumption on a primary fuel input basis was 209.2 million tonnes of oil equivalent in 2011, 0.2 per cent lower than in 2011. DECC estimate that the switch from gas to coal for generation increased primary consumption by 1.2 per cent due to the lower thermal efficiency.
  • Between 2011 and 2012 coal and other solid fuel consumption rose by 17.2 per cent driven by increased coal use in generation.
  • Oil consumption fell by 1.3 per cent.
  • Gas consumption fell by 9.2 per cent, with less gas used in electricity generation.
  • Primary electricity consumption, from nuclear and non-thermal renewables rose by 6.7 per cent.

Final energy consumption was 1.8 per cent higher in 2012, reflecting the colder weather in 2012, with domestic consumption up 10.2 per cent.

Download the EDW Energy Trends and Quarterly Energy Prices Q4 -2012.

 

 

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