The ICIS Power Index will remove confusion over the actual level of wholesale energy prices which feed into final bills
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, which delivers insight into the complex world of wholesale energy prices for both households and industrial electricity consumers, is updated every working day and is freely available from the ICIS website.
“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.
Support for the ICIS Power Index
“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.”
– Jeremy Nicholson, director of the Energy Intensive Users Group
“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.”
– Angela Knight, Chief Executive of Energy UK
“Wholesale price movements are key information for our members, and the new ICIS Power Index will help bring clarity to what’s going on.”
– Andrew Buckley, director-general, Major Energy Users Council
“The IPI is a good idea – it’s the right way to show greater transparency on the wholesale market.”
– Nigel Cornwall, managing director, Cornwall Energy
“The IPI is a useful and clear index for UK power. We’ve had a need for a similar number for a long time.”
– David Jutton, managing director, Jutton Associates
ICIS is the world’s largest petrochemical market information provider, with divisions spanning energy and fertilizers. Our aim is to give companies in global commodities markets a competitive advantage by delivering valuable information and analytics tools which enable our customers to identify and react to opportunities in markets which are constantly evolving. We have more than 30 years’ experience of providing pricing intelligence and news, forecast data, market analytics and independent consulting to buyers, sellers and analysts.
With a global staff of more than 600, ICIS has employees based in London, Houston, New York, Singapore, Dubai, Shanghai, Guangzhou, Beijing, Mumbai, Tokyo, Karlsruhe, and Milan. ICIS’s team of journalists is engaged in reporting market prices and news, and ICIS is fully committed to upholding the highest journalistic principles of verification, corroboration and authentication. ICIS has a compliance framework that along with its methodologies and business processes adheres to the requirements of the IOSCO PRA Principles.