9
Our Forecast:
The good news is that prices have remained stable through summer, and short-term fundamentals still look relatively strong. Storage levels across the UK and Europe are healthy, and recent demand has remained below seasonal averages. This has helped keep gas and electricity prices well below the highs seen earlier this year. However, this window may be closing. As we move into autumn, colder temperatures, falling renewable output, and increased competition for winter gas supply are expected to put upward pressure on prices. We’ve already seen signs of this in previous years, and the same market forces are starting to emerge now. While we’re not forecasting a return to the extreme volatility of recent winters, a gradual rise in wholesale prices is likely over the coming months. Businesses should consider acting now to secure favourable contract terms before suppliers begin to factor in winter risk.
What to Do If You Are in Your Renewal Window:
Take Advantage of Summer Stability: This is typically the last stable period before winter pressures take hold. Locking in now could help you avoid rising costs as suppliers begin to price in colder weather and increased demand. Consider Longer Term Contracts for Stability: While market movements are hard to predict, securing a two- or three-year deal at today’s lower rates can offer valuable protection. Even if a short-term offer looks slightly cheaper, longer contracts provide peace of mind and cost certainty during volatile periods. Stay Informed and Flexible: If your renewal window isn’t open just yet, keep an eye on the market. Track wholesale trends, storage updates, and winter forecasts. Being prepared to act quickly can make all the difference if prices start to climb.
Made with FlippingBook - PDF hosting