The Energy Blog

from Mitie Energy

Mitie Energy is an award-winning, UK-based energy, utilities and sustainability solutions business. Our end-to-end capabilities mean that we can offer everything from standalone services to a fully outsourced and integrated solution. As we are not a utilities provider, our services are truly independent. 

Smart thinking, Impartial advice, Proven delivery.


Middle Eastern Geopolitical volatility

How your business can mitigate price fluctuations
Mitie Research Team

Anas Papazachariou | Research Manager | Mitie Energy
Tejal Shah | Head of Risk Management & Technical Reporting | Mitie Energy

The background – extraordinary activity

Oil prices surged almost 15% on Monday 16 September, the highest one-day increase in several months, following a series of drone attacks at two Saudi Aramco-owned crude-processing facilities only days before.
The attacks resulted in a nearly 50% loss of production in the country (5.7 million barrels per day) – equivalent to approximately 5% of the total global oil supply.
As a result, when the Brent crude forward market opened it saw an intense level of activity. The front-month Brent crude oil price spiked significantly shortly after opening – as demonstrated in the chart below. This resulted in an extraordinary 19% price increase within minutes (reaching close to $71 per barrel) – the biggest jump within a single day in several years. However, this then dropped by 7% (to just below $67 per barrel) after the US Department of Energy said it would prepare to authorise the use of the country’s emergency stockpile if required in order to ensure stable supply.
This sharp spike in oil prices had a knock-on effect for gas, coal, carbon and power prices, which also rose. However, Saudi officials have reassured markets that exports would continue as normal, with storage facilities used to cover a shortfall in the short-term and lost capacity expected to be restored by the end of September 2019.

The impact on business: mitigating price fluctuations

As many energy managers will be aware, in the current climate, even by maintaining its energy usage, a business is set to see bills rise over time. With global political and economic volatility, including events such as this, and geopolitical tension in the Middle East, rising energy prices are set to continue.

One way to mitigate these fluctuations is by making use of a corporate Power Purchase Agreements (PPA) – locking in attractive electricity rates and achieving price certainty, while enhancing the organisation’s sustainability profile. At Mitie, we have a team of specialist FCA approved and CIPS trained PPA experts to help advise on this continuously growing and changing market.  

It’s also vital that businesses develop tailored utilities risk management strategies, to protect themselves from price fluctuations. While this may seem a simple solution, it can have a sizeable impact. We’ve helped clients manage over £1.6 billion of energy exposure by implementing these strategies.

And, finally, for a business to ensure it is best able to mitigate rising energy prices, optimising assets to have the most energy-efficient equipment on site and optimising operational processes is key. This is where an Energy Performance Contract (EPC) and/or an optimisation overview can come in. It allows businesses to upgrade assets, improve the energy and carbon performance of buildings and, ultimately, lower bills.

To find out more about protecting your business against energy price fluctuations contact us today.

Mitie Energy

Staying ahead of the competition means taking control of your energy. Making it simple, sustainable and efficient. Now, imagine taking control not only of your energy, but also of your assets, your building, your entire estate. 

Our end-to-end capabilities mean that we can offer everything from standalone services to a fully outsourced and integrated solution.
But as we are not a utilities provider, our services are truly independent. We are part of Mitie, the UK’s largest facilities management provider. This means that we can advise, implement, deliver and manage solutions that leverage our expertise across multiple utilities and Smart buildings to provide maximum efficiencies and cost-savings. 

Talk to us today about how we can help your business.

Contact us

Complete your details below and one of our Mitie Energy consultant will contact you


By submitting this form you have read and agree to our Data Privacy Statement

Mitie Energy Brochure

Find out how Mitie Energy can unlock independently-verified average savings of 13%, with guaranteed savings of 10% with zero capex investment for your organisation. Download our brochure today.

From Tiny Seeds

Indoor plants improve concentration and productivity by up to 15%, reduce stress levels and boost mood, making them perfect for the workplace. Companies are now exploring investing in 'biophilic design'.

Planning for the next power outage

Lee Stokes, head of sustainability solutions & innovation for Mitie Energy, looks back at August’s UK-wide power outage and reveals how businesses can build resilience should the worst happen.

Mitie Energy

Our clients’ energy, utilities and sustainability needs are diverse and often seemingly complex. Finding the right solution to meet these needs can be confusing. That’s why we have created a simple framework: Buy>Reduce>Comply that has been designed to meet all your end-to-end energy, utilities and sustainability solution needs.