Just how much would it cost electricity generators if I reduced my electricity consumption by turning off just one light? You would think the answer is half of bugger all, and you’d be almost right.
In an attempt to be a bit more precise, let’s quantify exactly what “half of bugger all” amounts to. Assume that the light I stop using is a 75 watt globe and that I was only using it for about 3 hours a day. So turning it off reduces my average electricity consumption by about 10 watts and saves me about 85 kilowatt-hours over the year.
With my generator expecting to get about 5 cents for every kilowatt hour traded on the wholesale market, the lost income due to my action is a touch over 4 dollars for the year. So “half of bugger all” comes in at about 1 cent each day. It means even less to the generator’s bottom line, because it no longer has to cover the cost of making the electricity that I no longer want.
So you wouldn’t expect the generator to give two hoots about my action. But there are reasons why the generators might be concerned, and they are all about multipliers.
Firstly, demand reduction has a significant multiplier on generator income. Not only does my not using electricity cost the generator a lost sale, it also reduces the price of all other sales on the wholesale market. And in theory, that directly impacts the generator’s profit, since that is on electricity that still has to be delivered.
In reducing my demand, I effectively create an oversupply in the market. And, as with any efficient market, prices respond with a signal to reduce supply. In fact recent market trends show that in addition to reducing the revenue in electricity sold by about $4, my turning off one 75 watt globe reduces the revenues of all other electricity sold by more than $10 across the year. So the net impost on the generator’s revenue is more than $14, most of which is profit.
Still not too much of a worry, unless of course I am not alone. Multiply my action by 7 million, or about 1 in every 3 Australians, and generator revenue would be down more than 100 million dollars on a net reduction in demand of 65 megawatts. That is about 1% of expected annual wholesale market bottom line, but a much higher percentage of generation profits. Multiply that again by a factor of 10, and we are talking of losses in the billions, and a potential bankrupting of some leading industry players.
And it is already happening.
Over the last few years, demand for electricity traded on the National Electricity Market – or NEM – has collapsed by over 900 megawatts and over twice that on forward projections. And wholesale electricity prices on the NEM have plummeted to record lows, down some 40% on just a few years ago.
Until early 2009 the demand for electricity traded on the market grew fairly consistently at around 2% each year. Although there was some slackening in demand before 2009, most industry analysts put it down to the GFC and thought it inevitable we would need another gigawatt or thereabouts of supply to meet 2012 demand.
That is the equivalent of one big new coal-fired power station, about 3 gigawatts of installed wind power capacity or 6 gigawatts of PV.
But instead, in 2009/10 demand actually fell in real terms by 140 megawatts, fell again in 2010/11 by 290 megawatts and again in the last 12 months by 500 megawatts. Compared to 2009, demand is now down by about 930 megawatts, or almost 4%. Compared to the forward projections of just three years ago demand is down by about 2.2 gigawatts or 10%. That is the equivalent of two big power stations we thought we would need, but no longer do.
And since 2010, wholesale prices have collapsed. The average price in the last financial year was a touch under $30 per megawatt hour. That is the lowest average annual price recorded on the market since 1999 and is about 40% lower than the long-term average of around $47, adjusted to 2012 dollar terms. Market revenue was down almost $3.5 billion on the yearly average of $9 billion in adjusted terms, and more than $5 billion on forward growth projections.
These figures give a direct measure of how the electricity market values demand reduction in terms of its impact on wholesale prices or, in other words, the price signal of oversupply. In fact the market is valuing a demand reduction of 1 watt on the forward projection at about $1.40 over the year. That compares to the expected wholesale value for 1 watt-year of electricity of 44 cents.
And so we get an estimate of our multiplier, of 140/44 or 3.2. Factoring in some other price effects such as the prevailing la Niña weather cycle, and a more conservative estimate of the price signal multiplier is probably a bit lower at around 2.5.
That is a very strong price signal, and testifies to the effectiveness of an efficient market. It may explain why generators are less than enamoured by schemes, such as energy efficiency and distributed PV, that take market share away from their business.
Of course, in the face of plummeting wholesale prices, consumers should be asking if they are seeing any of the benefit. Near record increases in retail prices would seem to suggest not and raise a raft of questions such as what exactly is the function of the wholesale market?
Wholesale Prices in U.S. Rise for First Time in Four Months - Businessweek
Wholesale prices in the U.S. unexpectedly rose in June for the first time in four months, reflecting an increase in food costs.
The 0.1 percent gain in the producer price index followed a 1 percent decrease the prior month, Labor Department figures showed today in Washington. The median estimate in a Bloomberg News survey of 70 economists called for a 0.4 percent fall. Excluding volatile food and energy, the so-called core measure increased 0.2 percent as projected.
A. Schulman Inc. and Kennametal Inc. (KMT) (KMT) are among companies anticipating raw materials costs will remain restrained as markets from Europe to Asia cool. Weakening growth in the U.S. also may limit price pressures through the production pipeline, reinforcing Federal Reserve policy makers’ projections that inflation is likely to be subdued.
“I’m not concerned about inflation at all at this point,” said Michael Moran, chief economist at Daiwa Capital Markets America Inc. in New York, who correctly forecast the gain in prices. “Some decline in commodity prices and a slower rate of growth in both the U.S. and globally suggests restrained prices in coming months.”
Stock-index futures held earlier gains after the report as slowing growth in China fueled speculation policy makers will boost stimulus measures. The contract on the Standard & Poor’s 500 Index maturing in September climbed 0.3 percent to 1,333 at 8:44 a.m. in New York. Treasury securities were little changed, with the yield on the benchmark 10-year note at 1.49 percent compared with 1.48 percent late yesterday.
Survey Results
Economists’ estimate for producer prices ranged from an increase of 0.2 percent to a decline of 1.3 percent.
Compared with the same month a year earlier, companies paid 0.7 percent more for goods, matching the 12-month gain in May as the smallest since October 2009.
The core index increased 2.6 percent in the 12 months ended in June, the smallest year-to-year gain since June 2011.
The gains in the PPI were led by a 0.5 percent increase in food, reflecting the biggest increase in meat prices since July 2011, the report showed.
Energy costs dropped 0.9 percent from the prior month, which included a record 2.1 percent drop in residential electricity.
About 70 percent of the increase in the core measure was attributed to a 1.4 percent advance in the cost of light motor trucks, the biggest in a year.
Raw Materials
Expenses further down assembly lines continued to drop last month, indicating price pressures will remain restrained. The cost of intermediate goods decreased 0.5 percent, the third consecutive decline. Crude goods fell 3.6 percent, the fourth straight fall.
Akron, Ohio-based A. Schulman (SHLM) (SHLM), a supplier of plastic compounds, anticipates raw-material costs will be relatively unchanged and said companies from which it buys goods seem to have little pricing power.
“Every month somebody tells us they’re going to increase their price,” Chief Executive Officer Joseph Gingo said on a July 10 conference call with analysts. “And every month, they’re not able to push it through because there is no demand, or soft demand.”
Producers benefiting from retreating costs for oil and other materials include Kennametal, a Latrobe, Pennsylvania- based supplier of cutting tools to manufacturers. The lower expenses will be a “tailwind,” Chief Executive Officer Carlos Cardoso said on a June 6 conference call with analysts.
Fed Outlook
Contained price pressures give the Fed more room to try to spur the three-year expansion. Declining consumer inflation reflected reductions in the price of crude oil and gasoline, and “measures of long-run inflation expectations continued to be stable,” policy makers said in minutes of their June meeting released this week.
Producer prices are one of three monthly inflation gauges reported by the Labor Department. The import-price index fell 2.7 percent in June, the biggest plunge since December 2008, a report showed yesterday. Prices excluding fuel fell 0.3 percent, the most in almost two years.
The cost of living index, the broadest of the three measures, may have been little changed last month, economists predicted ahead of the July 17 data.
To contact the reporter on this story: Shobhana Chandra in Washington at schandra1@bloomberg.net
To contact the editor responsible for this story: Christopher Wellisz at cwellisz@bloomberg.net
ItsHot.com Now Offers a Vast Selection of Diamond Engagement Rings at Wholesale Prices - YAHOO!
Engagement is a memorable and romantic day in one’s life. To make this day unforgettable it is essential to gift a special and trendiest engagement rings available. It is one of the most precious gift received from a loved one. An engagement ring is a piece of jewelry that remains close to heart. They are unique creating an impact on the person it is gifted to. These rings are considered as tokens of love and affection. Whether it is a solitaire ring or multi-store design there is an endless range of diamond engagement rings to choose from.
New York, NY (PRWEB) July 13, 2012
ItsHot.com, the renowned diamond jewelry manufacturer, offers a vast selection of diamond engagement rings at wholesale prices. ItsHot.com has come up with unusual and timeless designs of diamond engagement rings that are available at unbelievable prices. The entire collection includes preset Engagement Rings, engagement ring sets, engagement ring settings, Engagement Rings mounting sets and Engagement Ring Bands to add to its virtue.Engagement is a memorable and romantic day in one’s life. To make this day unforgettable it is essential to gift a special and trendiest engagement rings available. It is one of the most precious gift received from a loved one. An engagement ring is a piece of jewelry that remains close to heart. They are unique creating an impact on the person it is gifted to. These rings are considered as tokens of love and affection. Whether it is a solitaire ring or multi-store design there is an endless range of diamond engagement rings to choose from.
At ItsHot.com, you will find a vast selection of premium quality Diamond Engagement Rings and other items of jewelry at wholesale prices. This often translates into hundreds of dollars less than what you would have to pay at any retail store”, says ItsHot.com spokesperson. The collection of engagement rings available at ItsHot.com comes in multitude of combinations ranging from rings with solitaire round diamonds, princess cut diamonds, heart shape diamonds, oval diamonds to three stone rings to intricate rings with pave or channel set diamonds on the sides, from modern to antique designs. With a large number of celebrities flaunting stylish diamond engagement rings these elite items of jewelry have gained immense popularity. The stunning range of Diamond Engagement Rings made with solid gold or platinum and studded with authentic diamonds of exceptional beauty.
ItsHot.com is one stop shop for diamond jewelry and diamond watches shopping needs. The extensive collection of men’s diamond jewelry, diamond wedding bands, Diamond Engagement Rings and a variety of women’s diamond jewelry is sure to include something for everyone. All the items of jewelry are beautifully crafted by experienced craftsmen following the exact standards of precision. To know more visit ItsHot.com’s store in NYC or log in online at http://www.ItsHot.com.
Sales Team
ItsHot.COM
1-866-423-6262
Email Information
Shopping Linked To Menstrual Cycle - Medical News Today
Main Category: Women's Health / Gynecology
Also Included In: Psychology / Psychiatry
Article Date: 13 Jul 2012 - 10:00 PDT
'That time of the month' does not just mean mood swings, stomach cramps and cravings for certain foods. "Calories, beauty, and ovulation: The effects of the menstrual cycle on food and appearance-related consumption," a study published in the Journal of Consumer Psychology investigates what effect the menstrual cycle has in terms of consumer consumption.
Leading author, Gad Saad, professor of marketing at the John Molson School of Business and holder of the Concordia University Research Chair in Evolutionary Behavioral Sciences and Darwinian Consumption says: "Our goal was to investigate how a woman's menstrual cycle impacts consumption desires, product usage, and dollars spent within the food and beautification domains."
Saad and his team held classes at Concordia University recruiting hundreds of participants, of which they chose 59 females after a careful selection process. The women were asked to keep a detailed diary over a 35-day period, listing their calorie consumption, choice of clothing, purchases and beauty habits.
When the team analyzed the women's diary entrances, they observed the emergence of a distinct pattern in terms of how long they spent doing their make-up, sun-bathed, the clothes they wore to attract sexual attention and ate highly caloric foods. The team registered a notable increase in the women's behavior towards their appearance during the fertile phase of their menstrual cycle, and that they tended to spend more money on clothes during this phase of the cycle, i.e. days 8 - 15 in a 28-day cycle.
Saad, who wrote the books 'The Evolutionary Bases of Consumption' and 'The Consuming Instinct', which investigate the biological and evolutionary roots of consumer behavior, refers to Darwin's theory, saying:
"In ancestral times, women had to focus more time on mating-related activities during the fertile phase of the menstrual cycle, when the likelihood of conception was highest. Those same psychological and physiological mechanisms now lead women to engage in greater consumption of products relevant to reproductive drives during the fertile phase of their cycle."
The daily diaries also revealed a distinct drop in food consumption during the fertile phase. In terms of food, cravings and highly caloric foods peaked during the luteal (infertile) phase of the cycle, i.e. days 16 to 28, with a strong spike in purchasing food during this phase.
According to Saad, these factors are also involved in the evolutionary forces. He explains: "Women consume more calories during the luteal phase because they've evolved psychological and physiological mechanisms that favored non-mating-related activities like food foraging during the non-fertile phase of their cycles. Different Darwin pulls, such as mating versus food, take precedence depending on a woman's menstrual status."
Even though some women may feel oppressed by evolution when they find that their calorie cravings, clothing choices and shopping purchases are shaped by the ovulatory cycle, they should still be aware of them explains Saad, continuing:
"These consumption behaviors take place without women's conscious awareness of how hormonal fluctuations affect their choices as consumers. Our research helps highlight when women are most vulnerable to succumbing to cyclical temptations for high-calorie foods and appearance-enhancing products. These findings can help women to make choices for themselves contrary to the old canard of biological determinism."
Saad believes that developing a consumption-related app may help women in tracking when they are particularly vulnerable in terms of shopping habits. For instance, women could be empowered by being made consciously aware of adverse menstrual cycle-influenced behaviors when they receive a smart-phone warning message that reads, "Today's day 24 of your cycle - avoid grocery shopping!"
Written by Petra Rattue
Copyright: Medical News Today
Not to be reproduced without permission of Medical News Today
MLA
APA
Please note: If no author information is provided, the source is cited instead.
Add Your Opinion On This Article
'Shopping Linked To Menstrual Cycle'Please note that we publish your name, but we do not publish your email address. It is only used to let you know when your message is published. We do not use it for any other purpose. Please see our privacy policy for more information.
If you write about specific medications or operations, please do not name health care professionals by name.
All opinions are moderated before being included (to stop spam)
Contact Our News Editors
For any corrections of factual information, or to contact the editors please use our feedback form.
Please send any medical news or health news press releases to:
Note: Any medical information published on this website is not intended as a substitute for informed medical advice and you should not take any action before consulting with a health care professional. For more information, please read our terms and conditions.
Wholesale.com.au Talks About Commercial Restaurant Supplies - PRLog (free press release)
Having a restaurant business can be challenging especially in terms of attracting and gathering customers. It has to portray a unique individuality by using exceptional decorations and furnishing and exuding style and elegance to make it stand out from the numerous equally competitive restaurants around. Restaurant supplies wholesale helps in attracting clients especially if they are carefully maintained and completely sanitized. Most people give special attention not only to the food being served to them but also from the source where it was taken and made such as restaurant supply and equipment.
The first step before you indulge in seeking a reliable supplier will involves deciding on the items you need in your restaurant. Take some time to outline all the supplies you require in your restaurant. Identify the must have items as well as auxiliary items. There are numerous wholesale restaurant supplies companies out there, go for a company that is offering the needed products.
Some wholesale food service supplies dealers may specialize in stocking certain products such as utensils while others may specialize in wholesale beverages. Go for a company that is offering what you really need to enhance the running of your business. A restaurant can manage well if it is provided with sufficient supplies and dependable restaurant equipment to respond to the demands and needs of clients and customers. Equipment such as refrigerators, dishwashers, food processors, and cutlery are necessary in the preparation, storage, preservation, and consumption of food and beverages.
Buying commercial restaurant supplies at wholesale prices is the way to go when it comes to reducing costs and increasing revenue without compromising on the quality of the products.
Buy Quality Restaurant Supplies Online at Discounted Prices
Buying online is a great way to ensure branded products at wholesale prices. Many reputable online distributors of restaurant supplies maintain a wide inventory of different kinds of products from well-known brands. Some of the products that established restaurant supply stores are:
• Dinnerware supplies: Based on your specific serving requirements, you can choose from plates in different shapes and sizes. Disposable plastic plates in attractive colors to match your cups and table covers are also available.
• Food storage containers and plastic bags: Food and leftovers stored in these seal tight storage containers remains fresh and flavorful for a long time. Moreover, stocking poly plastic bags allows you efficiently meet the packing and take-out needs of your customers. These storage bags can be used in refrigerators, freezers and so on.
• Coffee cups: Foodservice business also needs stylish coffee cups and lids. Branded coffee cups come in plastic, foam, paper and waxed paper and are available at discounted prices in online stores.
• Serving utensils: Plastic catering serving utensils such as elegant serving forks, spoons, tongs, and cake cutters can be obtained at a fraction of cost when you buy them online.
• Commercial apparel – Apparels for chefs, hairnets, chef hats, bibs for patrons, and other related products are also available at wholesale prices.
Daily analysis and daily supervision of the happening in the restaurant help greatly in generating profit and ensuring huge sales returns. You need to make sure that everything you need is there so that the best food will be served, something that people will be craving for and can keep them coming back to you.
About wholesale.com.au
Wholesale Direct supplies a large range of food service, packaging & washroom products to restaurants, cafes, hotels; take away shops, fast food outlets, clubs & pubs. Our brands are well recognised in the industry, & include Solo cups, Merino napkins, & many more.
For details visit: - http://www.wholesale.com.au/
No comments:
Post a Comment