Energy with County Supplies

1
Introduction
Buying Teams 32.5 million Warehouse 7.9
million E-commerce 12,000 describe
requirements pa Contracts Team 70 million
2
Contracts
Catering/Cleaning/Grounds 12 million Corporate
Services 31 million MR 3
million Energy 24 million
3
Energy Customers
Corporate Schools Colleges District
Councils Charities
4
What Energy?

• Heating Oils and Motor Fuels
• Mains Gas
• Electricity

5
Heating Oils and Motor Fuels

• Physics
• Industry Structure
• Pricing and Contract Structure
• Sustainability

6
Physics

• Once dinosaurs ruled the earth ........
• Carbon life-forms (trees) turn to complex
  hydrocarbons
• Crude oil is a mixture of hydrocarbons
• Methane has one carbon and four hydrogen ( CH4 ),
  Butene has four carbon and nine hydrogen ( C4H9 )
• And some chains have eighty or more carbons in
  their makeup

7
Why does it matter?

• It's not oil, it's oils
• The longer the carbon chain, the heavier the
  product
• And although they are called refineries, the oil
  is distilled
• into ....

8
Supply Chain
Extracted
County of origin
Pipes and Ships
Refined
Blended
Customers
Stored
Lorries
9

Gas Oil Mid-Point Prices ( per tonne)

10

11

So,
Gas oil price (midpoint / exchange rate)
No. of litres in a tonne
companys margin
duty surcharge

• for gas oil, we take the mid point price, divide
  by the dollar exchange rate, divide by the number
  of litres in a tonne (1,183 in this case - tonne
  is mass, litre is volume) - (and it is different
  for other products - remember distillation) then
  add the company's margin and add the duty (10.07
  pence per litre for gas oil), and then any
  surcharge for small orders deliveries.
• And there's the price!

12
The Contract Numbers

• Total (all customers)
• Value 5,300,000 pa
• 35 seconds Gas Oil 5,033,000 litres pa
• 28 seconds kerosene 160,000 litres pa
• Bio-DERV 7,735,000 litres pa
• Or
• Space Heating 470,000 kWh pa
• Motor fuel 696,000 kWh pa
• All with health and safety issues,
• And none of it green! (well 5 of the diesel!)

13
Green Issues

• Burnt hydrocarbons are not renewable
• Biofuels
• A 5 blend delivers 3 CO2 saving plus lower
  particulates
• Low volume mixes don't require engine
  modifications
• At mixes of up to 20 fossil fuel combustion is
  improved
• New industry, new employment (sunflowers)
• But
• Shortage of feedstock
• Acceptability
• Longer-term effect on engines
• Cost
• Hybrid Engines
• Hydrogen Cell technology
• hydrogen plus oxygen electricity plus water

14
Natural Gas

• Physics
• Industry Structure
• Pricing and Contract Structure
• Sustainability

15
More Physics

• A mixture of hydrocarbons with small molecules
• Natural gas used in the home is mainly methane,
  CH4

16
Pricing and Contract Structure

• Cost Elements
• Raw material
• Distribution
• Metering
• Margin
• Climate Change Levy

17

Gas Prices Sept 2003 - date

18
Background Numbers

• Contract Value current 5.8 million pa
• expect 6.9 million next year
• Volumes 300 million kWh pa
• HCC 4.4 million current
• 215 million kWh
• 800 meter points
• Degree Days !

19
Green Issues

• Reduce usage!

20
Electricity

• Physics
• Industry Structure
• Pricing and Contract Structure
• Sustainability

21
Physics

• Electron flow in cables
• You can't store electricity !
• Coal, nuclear, gas, oil, hydro, wind, CHP, waste
  to energy, photovoltaic, geothermal, tidal,
  bio-mass

22
Pricing and Contract Structure

• What can't you do with electricity?
• Why does that matter?
• It's Christmas Day, and the TV Christmas Special
  has just finished -
• everyone puts the kettle on

23
Generation

• Bidding into the 'Pool
• Base Load
• Peaks
• Coal, nuclear, oil, gas, wind, waste, hydro,
  imported - (costs)

24
Meter Operation

• Code 3 and Code 5 meters
• Half-hourly measurement and communication links
• Maximum demand
• Quarterly
• Smart

25
Contracts

• HHD
• Monthly charge
• Available Capacity charge
• Day units
• Night units
• Communications charge
• Data collection charge
• Climate Change Levy

26
Contracts

• Maximum Demand
• Monthly charge
• Available Capacity charge
• Day units
• Night units
• Single rate units
• Climate change levy

27
Contracts

• Preserved Tariffs
• Don't ask!

28
Other Contracts

• Plus
• Meter Operator Contract for Code 5 meters
• Connection Agreement
• Street Lighting
• Pseudo-metering, time-switches and lamp-post
  counting

29
Numbers

• Usage (excluding street lighting)
• 60 million kWh pa (HCC sites)
• 86 million kWh pa on CS contracts
• Value
• all in 10.0 million pa

30
Green Issues

• HCC has supply for some large sites that is from
  renewables
• (14.5 million kWh)
• HCC has supply for some middle sized sites that
  is from good quality CHP
• (15 million kWh)

31
Pricing!
ROC Speculation
32
Other Generation Methods

• Wind
• Wave
• Tidal
• Hydro
• Waste
• PV
• Solar
• Geothermal
• Biomass

33
Carbon Reduction Commitment

• Target UK Reduction of Carbon Emissions
• 80 by 2050
• Self-assessment and Audit
• League Table
• Financial Carrot and Stick

34
Smart Metering

• Energy Data
• Energy Management

35
Micro-Generation

• Wood-Pellet Burning (QECP)
• Middlehouse And Tennant Gill
• Photovoltaic Hydro Wind-Turbine