COVID-19 post lock-down effects
How COVID-19 has affected the Energy Industry post lockdown.
Whilst the UK has been on pause the Energy Industry has been taking the hit, although operation business as usual is underway, there’s still a while to go.
Full lockdown measures resulted in huge reductions in services and industry work pushing down the electricity demand down by 20%, leaving us at Sunday levels. Partial lockdown left smaller effects and although the rates post lockdown are creeping up, we’re still 10% below the pre-lockdown levels.
Global statistics aren’t much better as the production of all fuels could be negatively affected. Global energy demand declined by 3.8% in the first quarter of the year alone resulting in the prediction of the largest decline in 70 years and the largest ever in absolute terms, with a 6% decline in 2020.
Oil demand could drop by 9% across the year, meaning oil consumption will be back at 2012 levels. Coal demand isn’t far behind with an 8% drop!
Although renewable's still hold a sturdy share in the production of electricity than prior to COVID-19, in fact the demand is expected to increase because of low operating costs and preferential access to many power systems.
This means that Energy prices are at an all-time low, with the expectation of business now getting operational it’s a good time to purchase your energy before the market goes to Pre-COVID levels.
Get in touch with Utility Hive for expert advice on 0800 029 4519.