The United Kingdom
The UK has been a pioneer of energy market liberalisation with gas and electricity market supply competition beginning in 1990 and available to all customers in Great Britain in 1998 and 1999 respectively. Privatisation of state energy assets and development of regulated third party access, competitive energy markets and liquid energy trading has led to widespread market entry and exit, as well as significant investment in import infrastructure. Going forward the UK faces challenging carbon emission reduction targets, whilst negotiating leaving the European Union, but has significant potential in a range of energy supply options including shale gas, offshore wind, solar, and new nuclear power generation.
MJMEnergy began providing energy consultancy in the UK in 1994, following Mike Madden’s work with British Gas in the 1980s and early 1990s. Since then MJMEnergy has remained highly active in the UK energy market, providing energy consultancy and energy training on a wide range of issues.
Below you will find examples of some of the consultancy, training or publishing work that we have carried out in the UK. If you want to explore how we can help you talk to us.
The following titles are examples of some of the energy consultancy projects that we have carried out in this region. (Clicking the title will provide more information.)
- TECCS Service
- Northern Ireland Utility Regulator Network Code Expert
- Drafting of Regulatory Exemption Application for Merchant Interconnector Pipeline
- UK Gas Storage Feasibility Study
- UK Apartment Block Gas Supply Replacement
- Review of Gas Safety Standards, Reports and Recommendations
- Europe Off-grid LNG Market Study
- UK LNG Market Entry and UNC Accession Study
- UK and Germany Market Entry and Trading Study and Workshop
- UK Entry Capacity Advice
- UK Significant Code Review: Gas Supply Security
- UK Electricity Market Entry and BSC Accession Support
- Expert Witness in Dispute over Legacy Gas Transportation Agreements in the UK
- UK Energy Company Structure Advice
- Potential of Repurposing Gas Mains for Heat Networks Project
- European Storage Investment Opportunities
- UK and Italy Gas Transportation Study
- Gas Quality Study
The Energy Codes Changes Service (TECCS)
The competitive gas and electricity markets in the UK are made possible by a series of industry codes enabling supply companies to gain access to gas and electricity transportation networks.
This is a monthly subscription consultancy service based on providing clients with frequent, comprehensible,
information on current proposals, including short summaries, and impact
assessments and recommendations tailored to your company position.
Currently we are offering this service for the Uniform Network Code (UNC) in gas and for the Balancing and Settlement Code (BSC) and the Connection and Use of System Code (CUSC) in electricity.
For more information or a quotation for this service, contact us.close
Northern Ireland Utility Regulator Network Code Expert
MJMEnergy were engaged as specialist Network Code advisors to the Northern Ireland Authority for Utility Regulation (NIAUR) providing advice on the development of a common energy market.
Areas covered included a review of reports and documents produced by the various players on the Common Arrangements for Gas (CAG) project (a plan to integrate the Northern Ireland and Republic of Ireland gas systems), and assistance in the development of policy, particularly in relation to system operation, supply security and infrastructure investment.close
Drafting of Regulatory Exemption Application for Merchant Interconnector Pipeline
Working for a major merchant interconnector operator in Europe, MJMEnergy drafted a regulatory access proposal with supporting documentation, relating to Article 22 of the EU Gas Directive. MJMEnergy worked to assimilate material provided by the client and supplement it with market analysis, review of competing infrastructure, review of the relevant legislation, and a review of the contractual arrangements.
Working to very tight timescales, we then drafted a full exemption application for the project.close
UK Gas Storage Feasibility Study
The purpose of this feasibility study was to provide estimates of capex, opex and potential income that would result from converting a disused mine into a gas storage facility for operation in the UK gas market. This project involved understanding how the technical and commercial aspects of gas storage in the UK linked with a detailed geological understanding of the potential asset itself. Therefore we developed a bespoke team that consisted of experts in the technical and commercial aspects of gas storage, gas compression and geology, working with WYG.
In order to establish both the technical and commercial feasibility of the project we developed two work areas. The Technical Team undertook a review of the disused mine as a potential gas storage facility with detailed examination in order to establish its potential technical characteristics. In parallel the Commercial Team, following an analysis of the gas storage market in the UK, developed a gas storage valuation model. Then using the characteristics provided by the technical team, established a potential NPV for the project based on the intrinsic and extrinsic value of the asset. Given the aspirations of the client to ultimately sell the asset the main deliverable was a high quality feasibility study for review by potential purchasers. The final report therefore clearly set out the options open to potential purchasers for using the disused mine as a gas storage facility with associated costs and potential incomes.close
UK Apartment Block Gas Supply Replacement
Following the discovery of safety concerns with gas mains in a 1970s block of 85 luxury flats in London, MJMEnergy negotiated with the gas transporter and its contractors over the least intrusive and most effective way of replacing the complete gas main and supply up to the consumer meters. The project required much research into the intricacies of the building construction, and the difficulties of replacing a centrally installed gas supply system put in to old standards during the original build. Visits to site were reinforced by individual inspections of each dwelling, and a summary of the design of each flat and its possibilities.
Initial meetings with the Building Manager and the Property Company Directors set the scene for a good understanding of the brief. Discussions with the transporter and their contractors identified the different views on how the pipe replacements could be achieved, with conflicting requirements over the location of new pipes. Eventually after much research into different possible solutions, ones were found which did not involve the unwelcome prospect of many risers up the side of the building - which although not listed, is in a conservation area. These bridged the gap between the otherwise conflicting views of the transporter and the owner. The work has now been carried out.close
Review of Gas Safety Standards, Reports and Recommendations
Complete review of a report on a gas installation in two large blocks of flats in London, following concerns by the Health and Safety Executive about the lack of adherence to the standards in place at the time and possible dangers to the occupants. The project required researching all the available Gas Standards and Gas Acts, Building Regs, IGEM Gas publications and pipeline safety regulations (23 in total). Both those current and subsequent issues of the standard and regulations were then applied to the design and installation of the gas supply network in these large blocks of flats. Among many subjects covered were pipe entry requirements, the quality and appropriateness of risers, laterals and valves, and the incorrect installation of meters. The appropriateness of the remedial work necessary was also reviewed.
Besides reviewing and validating the previous report on the installation, the consultancy work summarised the standards in place when the project was tendered, those when it was built and those current at the time of the study. This led to the Client having confirmation of the whole scenario, including a measure of how the installation was to be put right, and how accountability could be allocated and disputed.close
Europe Off-grid LNG Market Study
MJMEnergy undertook a market study for a major European energy player looking at the companies seeking to develop the LNG market for road transportation and off-grid gas in Belgium, Netherlands, Norway, Spain, Sweden and the UK, as well marine shipping in the Baltic, North Sea and English Channel, and inland waterway transport on the major West European waterways in Belgium and the Netherlands.
The completed project included a final report and workshop reviewing opportunities, risks and competitors for the client.close
UK LNG Market Entry and UNC Accession Study
MJMEnergy provided an industrial gases business with a UK gas market entry study, considering the practicalities of sourcing LNG within the UK in order to supply the LNG road transport market. A key part of the study included advice on the cost, benefits and process of becoming UK gas shipper and acceding to the Uniform Network Code.
The analysis included estimates of gas supply costs from a range of sources, including peak-shaving LNG and imported LNG.close
UK and Germany Market Entry and Trading Study and Workshop
MJMEnergy provided a new entrant with a UK and Germany gas market entry and trading study and workshop, looking at opportunities, risks and operations in energy trading market, costs and benefits of becoming a gas shipper, and making recommendations for next steps in strategy development, including requirements for UNC Accession.close
UK Entry Capacity Advice
MJMEnergy entry capacity expert, Nick White, provided CERA with advice on the GB entry capacity regime and the impact of new capacity substitution rules on the future availability of capacity at St Fergus.close
UK Significant Code Review: Gas Supply Security
Ofgem as part of its Gas security of supply review, commissioned MJMEnergy/Redpoint to identify and analyse the possible risks to GB gas supply security, to inform the regulator’s decisions as to whether to support strategic storage or other interventions in the gas market.
The report was based on a wide-ranging literature review and a series of interviews with key stakeholders and academics.
MJMEnergy produced a report that provided an overview of the issue of security of gas supply as it affected the GB market, including an analysis of what was meant by security of supply, current and future challenges to security of supply and a description of the GB gas market from a security of supply perspective.
We also analysed potential supplies of gas (delivered as LNG and pipeline gas respectively) and associated risks to GB supply security and provided key conclusions regarding risks to security of supply for the GB gas market.
MJMEnergy provided gas specialist support to Redpoint’s modelling of the impact of various potential security of supply interventions.close
UK Electricity Market Entry and BSC Accession Support
MJMEnergy provided consultancy services assisting MVV in the establishment of a UK electricity generation and trading facility, including meeting licensing and registration requirements and setting up fit for purpose systems.
This included a series of workshops and meetings with MVV staff, and ongoing support for an extended period, to support the development of Energy from Waste generation projects in the UK.close
Expert Witness in Dispute over Legacy Gas Transportation Agreements in the UK
Mike Madden of MJMEnergy acted as an expert witness in a dispute between a gas producer and a large power generator in the UK over the impact of switching from a distance-related monthly balancing transportation contract to an entry/exit Network Code based transportation agreement. This work entailed comparing the relative strengths and weaknesses of the two regimes from an operational and commercial perspective and presenting them to the court.close
UK Energy Company Structure Advice
Spark Energy approached MJMEnergy Ltd requesting consultancy support in determining the structure, operations, feasibility and risks of establishing an Enterprise Investment Scheme company for UK gas trading, as well as ongoing support, if it was required with establishment of this business. MJMEnergy provided Spark Energy with a study outlining the options establishing an EISco and recommendations for the way forward.close
Potential of Repurposing Gas Mains for Heat Networks Project
MJMEnergy worked for the UK Department of Energy and Climate Change on a project to assess the potential for repurposing iron gas mains (which were due to be replaced under the Iron Mains Risk Reduction Programme) as part of heat networks.
The project required MJMEnergy to facilitate communication between the Gas Distribution Network Operators, DECC, Ofgem and the Health and Safety Executive on possible projects. MJMEnergy collated resources into a secure online library, and produced a summary report on the potential.close
European Storage Investment Opportunities
Working in conjunction with South Court, MJMEnergy provided a ranked project database for an investment firm wishing to enter the European gas storage market. The database included over 50 European gas storage facilities, with rankings reflecting their potential value in changing markets, and recommendations for where investment was l ikely to achieve the greatest return.close
UK and Italy Gas Transportation Study
MJMEnergy, working in conjunction with Gas Strategies, provided a Japanese utility with a detailed study of gas transportation arrangements under the network codes in the UK and Italy, including the impact of market liberalization and gas tariff structures.close
Gas Quality Study
MJMEnergy, in conjunction with Gas Strategies, provided IEEJ with a detailed study of gas quality in the USA, the UK, France, Netherlands and Germany, with recommendations for international best practice.close
Training and Capacity Building:
The following are examples of some of the energy training and capacity building that we have carried out in this region. (Clicking the title will provide more information.)
- UK Electricity Markets
- Development of Network Code Course
- UK Gas Markets
- The Physical Gas Market
- Market Fundamentals & Price Behaviour
- Overview of the Commercial Gas Market
- The Gas Balancing Game
- Instruments & Trading Strategies
- The Future of Gas
- UK Energy Market Essentials
- Physical gas markets
- Physical electricity market
- UK energy players
- Commercial energy market overview
- Future energy
- The Gas Trading Game
- UK Energy Market Futures
- Reasons for change and policy interventions
- The Carbon Counter Game
- Pathways - all hail electrification!
- Decarbonisating energy
- The hydrocarbon bridge - how we are doing?
- My 2050 role play
- What's in the News?
- LNG Economics and Markets
- Global LNG
- LNG Supply Workshop
- LNG today
- Current and future trends in LNG supply
- LNG demand outlook
- Key country profiles and forecasts
- World LNG supply outlook
- Ofgem Gas Technical Basics/Advanced
- EU Electricity Markets
- Uniform Network Code Course
- Introduction to the Network Code
- Entry Capacity of Gas
- Exit Capacity of Gas
- The Network Code Modification Process
- Energy Balancing and System Security
- The Customer Interface
- UK Gas Hedging and Optimisation
- UK Gas Market Principles, Processes and Regulation
- UK Gas Supply & Demand Overview & Trends
- UK Gas Market Structure, Instruments & Price Behaviour
- What are options?
- Gas Market Risks
- Gas Trading Game
- Training Games, Exercises and Simulations
- 21st Century Regulation
- Gas Storage Course
- Why store gas?
- Types of gas storage facilities
- How storage is sold
- Storage economics
- Building gas storage
- A case study of a current storage project
- The future of gas storage
- Influencing Commercial Outcomes
- Framework Agreement with IGEM for the Provision of Technical Training
- Introduction to the UK gas industry and its market.
- Asset integrity management.
- TGas market safety, legislation and regulation.
- Engineering ethics – doing the right thing.
- Safety, risk & reliability management.
- Energy Markets Course
- Emissions Trading Course
- Global Oil Market
UK Electricity Markets
During the course of the day we will give you an introduction to the
electricity market and explain what the physical and commercial market
is. You will try your hand at trading in our Electricity Balancing
Game before learning about how electricity interacts with the environment
and how the market may develop beyond the next five years.
The next public course date is:
Development of Network Code Course
MJMEnergy delivered a bespoke in-house course for a European transporter on the development of the GB Network Code from its origins in 1996 to the Uniform Network Code in 2005 and beyond. The aim was to assist the transporter in developing its own network code, exploring how changing market requirements, regulation and corporate structure in the GB gas market impacted on Network Code development and utilisation.close
UK Gas Markets
As well as explaining the whole UK 'world of gas', this one-day course will also look at coping with the un-predictables, like the weather, future consumption patterns and the imperative of trading in gas supplies and explaining how these factors form the NBP prices.
This one-day course looks at:
The next public course date is: close
UK Energy Market Essentials
If you are new to the energy industry, this course will equip you to understand the unique features of energy supply within, out of, and back into the UK. It will give you a vital take on the drivers of energy prices, and the effect our capricious weather has on electricity and gas demand. It will help you to both work out how your own job is influenced by the whole world of energy, and to gaze into the future of where our heat and light might come from when we have retired!
The course covers:
UK Energy Market Futures
The course will equip all those needing their own take on the UK energy market with the ingredients to assess likely future scenarios up to 20 years ahead. It features a helicopter view of the current market, known planning success stories, clean energy solutions and other energy-critical subjects. It will help debate the question, "is the future electric?" and look into the shape and challenges of future markets.
The course covers:
LNG Economics and Markets
Understanding the costs and value of LNG is crucial to optimising LNG operations and purchasing in changing markets. This three-day course offers helpful insight, useful case studies and practical exercises.
Day 1: An introduction to the LNG business and economics.
Day 2: Making and delivering LNG: costs and projects.
Day 3: Extracting value: regasification, the long-term and short-term markets.close
During the course of the day we will study US, European and Asian pricing
methodology, and take a look at traditional pricing
structures and shifting trends. The expansion of LNG
interest and the evolution of LNG pricing worldwide
is explained with a look at the future prospects.
The next public course date is:
LNG Supply Workshop
The LNG supply industry is rapidly developing with new technology, supplies and contractual arrangements. Drawing on MJMEnergy's comprehensive, recently published LNG Supply Handbook, the LNG Supply Outlook Workshop provides an insightful, high-level, summary of LNG supply developments and forecasts from the short-term to 2035.
This half-day workshop will cover the following, although you may request variations:
Ofgem Gas Technical Basics/Advanced
We designed a Gas Basic and Gas Advanced course for Ofgem to provide a greater understanding of the operation of the gas supply system for their non-engineers as well as perspectives on commercial gas issues.
An extensive handbook to go with each course and a precourse online questionnaire to help staff know which level they required was also provided.close
EU Electricity Markets
Over the two days you will gain a sound understanding of the complexities of the European electricity markets, explore the methods used by different countries across Europe and participate in two different interactive trading and balancing scenarios. You are free to ask questions from the trainers who are both experts in this field and there will be plenty of opportunities for discussion.
You will gain an overview of the European electricity market and examine policy and legislation backgrounds. We will also explore together some of the key country markets and actively engage with balancing.
We will provide you with an understanding of the environmental drivers,
including the consequences of COP 21, and examine wholesale markets,
trading and some of the other key European country markets.
You will compete with other delegates in the trading exercise and learn about
the future of power generation, markets and demand.
The next public course date is:
Uniform Network Code Course
The day starts with an introduction to the Uniform Network Code (UNC), building on that with a detailed look at entry capacity and exit capacity, the UNC modification process, energy balancing and system security, rounding off with the customer interface.
This one-day course explores:
The next public course date is: close
UK Gas Hedging and Optimisation
During this day you will gain an understanding of the complexities of trading gas in the UK. We will explain the concepts and then let you enjoy the consequences of your decisions as you attempt to balance your supply and demand position in our Gas Trading Game. Warning, this is not for the faint hearted!
Training Games, Exercises and Simulations
Designed to introduce you to real-life circumstances in which you can make successful choices based on learnt skills, our games and exercises cover a wide variety of areas. For more advanced experiences we have developed exercises that set the scene with realistic management and technical information enabling players to engage with the subject in a serious yet safe environment.close
21st Century Regulation
This three-day course has been specifically developed in order to explain both the background and practice of gas market regulation as well as providing suitable tools and intellectual and practical frameworks for parties involved in 21st Century gas regulation.
Understanding and applying regulation to gas markets is a crucial skill as energy market liberalisation gathers pace around the world.
The purpose of this first day is to provide you with a solid academic theoretical and historical basis to energy market regulation, drawing on the experience of European and North American energy markets in particular.
The purpose of this second day, building on regulatory economic theory, is to provide a series of practical examples of how regulation is undertaken in the real world. This will be achieved firstly with a series of sessions on specific regulatory issues followed by a number of case studies.
The purpose of this third day is to build on both economic theory and practical application in order to provide you with useful tools and approaches that you can apply to your own particular regulatory environment, whether you are a regulator, the regulated, or a participant in a regulated market.close
Gas Storage Course
We will explain the need to store gas and look at the different types of storage facilities available. You will gain an understanding of how to buy storage capacity, trade gas using storage, and the whole economics of gas storage. You will look at how to build storage, examine a case study and explore the future of storage.
The course covers:
Influencing Commercial Outcomes
Centrica's leadership development programme required a bespoke Influencing Commercial Outcomes course.
Over three-days we provided hands-on negotiation and market simulations as well as expert seminars on key issues of relevance.close
The IGEM Academy
Over the last few years MJMEnergy has worked closely with IGEM to prepare and deliver technical training for engineers, both in the UK and overseas. Typical examples have included the following:
Energy Markets Course
This three day course provides a thorough understanding of the dynamics of the gas and power industry. The main focus being: physical gas and electricity systems, commercial energy markets and energy trading.close
Emissions Trading Course
This fast paced day will explore the past, present and future of trading emissions and how that may help combat climate change. The course will explain the various acronyms as well as how to trade in this market.close
Global Oil Market
You will learn about the charactaristics of oil, how the terms upstream, midstream and downstream relate to this industry, what makes the price of oil and how it is traded.close
The following titles are examples of energy reports that we have written, published or sell and are included to complement this section. Feel free to click on the titles for more information.
- The Long Term Capacity Auctions
- Network 2000
- The New Electricity Trading Arrangements
- The Network Code
- Lifting of Stricter Consents: The Future of UK Gas-Fired Power Plants
- The Gas Trading Manual
- The Oil Trading Manual
- Physical characteristics and refining
- Oil pricing arrangements
- Physical oil markets
- Forward and futures contracts
- Options and swaps
- Operations and logistics
- Accounting and taxation
- Controlling financial risk
- Legal and regulatory control
- Underground Gas Storage and LNG Storage Market in the World
The Long Term Capacity Auctions
Shippers wishing to deliver gas into Transco's supply system are required to hold entry capacity rights. Entry capacity is available at the six major beach terminals, as well as a number of smaller entry points. Capacity is variable depending on demand and network flows. The cost and availability of entry capacity is major factor in UK gas producers and shippers profitability.close
Mike Madden and Nick White authored this report for FT Energy, explaining the key changes to the UK Network Code arrangements in 1999, including the creation of a within-day gas balancing market for both shippers and the transporter, the On-the-day Commodity Market, and the development of entry capacity auctions.close
The New Electricity Trading Arrangements
Written by Nick White for Petroleum Economist, this industry guide described and explained the major reform of the UK electricity system whereby the centralised electricity Pool system was replaced by a system of bilateral contracts (referred to as the New Electricity Trading Arrangements or NETA) with generator self-dispatch under the terms of the Balancing and Settlement Code.close
The Network Code
The Transco Network Code introduced in 1996 was a new approach to gas transportation arrangements, which has now been used as a model f or many liberalising gas markets. Mike Madden’s report written for FT Energy explained the background, rationale, development, text and operation of the Network Code, helping readers to understand the huge changes in the UK gas market at the time.close
Lifting of Stricter Consents: The Future of UK Gas-Fired Power Plants
This report written by Nick White and David Smith and published by FT Energy reviewed the impact of the UK Government’s decision to impose a moratorium on new gas-fired power stations during the period leading up to the reform of the UK electricity pool.
In bringing a premature end to the Dash for Gas, the Government temporarily preserved UK coal operations, but with the risk of deterring inward investment and distorting the market.close
The Gas Trading Manual
Edited by MJMEnergy associate David Long, with Geoff Moore and Gay Wenban Smith, the Gas Trading Manual (GTM) established itself as a leading information source on the international gas market. Compiled from the contributions of some of the most senior and widely respected figures in the trade, this edition provided detailed and accurate analysis on all aspects of this complex business from the geography of gas through to the markets, trading instruments, contracts, gas pricing, accounting and taxation.close
The Oil Trading Manual
Edited by MJMEnergy associate David Long, the Oil Trading Manual (OTM) provided a unique and comprehensive reference source to the structure and conduct of the international oil markets including:
Underground Gas Storage and LNG Storage Market in the World
"The Underground Gas Storage & LNG Storage Market in the World 2015-2035" builds on the CEDIGAZ Underground Gas Storage Database, the only worldwide Underground Gas Storage database to be updated every year, and on the CEDIGAZ LNG Service, a comprehensive service dedicated to the LNG market.
This report is divided into three parts:
Part one: - analyses current and future trends in the storage market to 2035 (UGS and LNG storage).
Part two: - is specifically dedicated to the EU UGS market. The analysis reviews key economic and regulatory factors that are reshaping the EU market.
Part three: - includes in-depth analyses for 49 countries worldwide.close
Key staff and associates:
- Mike Madden
- Chris Le Fevre
- David Long
- Nick White
- Duncan Jack
- Jeremy Bending