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UTILITY WEEK | 21sT - 27Th NovEmbEr 2014 | 27 Markets & Trading This week First phase of gas storage project opens First part of stublach opens – a project that on completion will be the UK's largest onshore facility The first phase of a gas storage project that on completion will be the UK's largest onshore facil- ity was opened on 14 November. The Stublach gas storage facility was developed by GDF Suez subsidiary Storengy and currently offers the gas market access to 40 million cubic metres (mcm) of capacity. This could help to protect users against high demand or supply dis- ruptions that could lead to dramatic market price spikes. A further three caverns will be available at this facil- ity by the end of December 2014, bringing capacity to 100mcm, but the site plans ultimately to expand to four times that volume. "As the UK becomes more dependent on gas imports and the likelihood of an increasingly flexible demand, new storage sites will play an important role to meet the needs of the gas market, and by 2020 Stublach will be the largest UK onshore underground gas storage facility," a statement from the company said. The need for greater domestic gas storage was high- lighted in early 2013 when the UK's stocks were depleted following a long, cold winter leading to dramatic market price spikes for near-term gas. Concerns over the UK's limited gas storage capacity were raised again this year with the heightened risk of a disruption of European gas supplies via Ukraine from Russia. Although the UK does not depend on Russian gas deliveries, its storage capacity relative to consumption stands at just 6 per cent, com- pared with a European average of 22 per cent, meaning the UK is more exposed to changes in the market price. JA ENvIroNmENT Carbon price hits eight-month high Carbon emissions allowances reached a fresh eight-month high of €6.85 (£5.50) per metric tonne last week as political support for a reform of the beleaguered market continues to mount. On 12 November, the European Union's carbon market closed at €6.85/tonne, its highest level for eight months, with the following morning's allowance auction also clearing at an eight-month high of €6.78/tonne. The high stood €1.33/tonne, or 24.3 per cent, above pricing levels seen in early October, according to market specialists at Platts, as work began in the European Parliament's envi- ronment committee on reform proposals made in January. Under the plans, the commit- tee will move excess allowances from the market to a reserve in a bid to address the long-running oversupply, which continues to weigh on pricing levels. "Sentiment remains strong, the market is pricing that the [EU's environment committee] will propose effective legisla- tion to combat the surplus of allowances currently in the market," an analyst note from CF Partners said. In an address to the Euro- pean Parliament, Manuel Arias Canete, the EU's new climate commissioner, restated the commitment of the EU council to making the Emissions Trad- ing System the cornerstone of EU climate change policy – a speech which could further have emboldened bullish sentiment, the note added. ELEcTrIcITY Ofgem to consult on liquidity progress Ofgem will meet with represent- atives from the UK's electricity wholesale market, seeking feedback on the impact of its market liquidity reforms ahead of an interim report expected by the end of the year. A spokesman for Ofgem said the regulator would meet with key stakeholders in the next few weeks to gain feedback on the impact that its reforms have had on trading activity since they came into effect just over six months ago. This qualitative feedback will be reported alongside the quantitative impact on trading volumes so far, in an interim report to be published in mid- December, the spokesman said. "The interim report will not provide any conclusion on the effect of the reforms as it is too early to have any conclusions. We will need at least one year of data to begin to understand the effect on liquidity," the spokes- man added. Cooking on gas: expansion at Stublach Headline sponsor Supported by Charity Partner Dame Yve Buckland Chair Consumer Council for Water Gary Dixon Domestic Retail Director United Utilities Helen Phillips Director – Customer Services and Networks Yorkshire Water Richard Khaldi Senior Director – Casework and Policy Ofwat Expert speakers include The 3rd annual Utility Week Water Customer Conference will feature experts from across the sector sharing fresh ideas on consumer strategy. Attend to: • Learn how to stay ahead of the curve with innovative customer service • Prepare for the opening of the non-domestic market to retail competition Headline sponsor Supported by Charity Partner Dame Yve Buckland Chair Consumer Council for Water Gary Dixon Domestic Retail Director United Utilities Helen Phillips Director – Customer Services and Networks Yorkshire Water Richard Khaldi Senior Director – Casework and Policy Ofwat Heidi Mottram OBE Chief Executive Offi cer Northumbrian Water Vincent Muldoon Customer Relations Director Affi nity Water Expert speakers include The 3rd annual Utility Week Water Customer Conference will feature experts from across the sector sharing fresh ideas on consumer strategy. Attend to: • Learn how to stay ahead of the curve with innovative customer service • Prepare for the opening of the non-domestic market to retail competition • Brush up on SIM – how should we be preparing for the 2015 changes? • Hear experts talk on increasing consumer engagement • Find out how Smart meters and data can revolutionise customer experience Follow us @utilityweek using #watercustomer BOOK NOW AT www.uw-watercustomer.net WaterCustConf15-HPHad.indd 1 16/09/2014 14:18