Today, on 23/10/2024, energy prices in the UK have reached their highest point in 2024, presenting a critical moment for businesses. With ongoing price surges and uncertainty about future trends, this is the time to lock in your business energy rates before costs climb even further. In this blog, we’ll outline why energy prices are the highest in 2024, what’s driving these increases, and how your business can protect itself from future volatility.
Why Energy Prices Are the Highest They’ve Been in 2024
The UK energy market has been under immense pressure throughout 2024, leading to the highest prices seen in recent years. This spike can be attributed to several key factors:
Supply Constraints: Reduced natural gas supplies from major producers, particularly in the North Sea, have tightened availability, driving prices higher.
Geopolitical Tensions: Conflicts in energy-producing regions such as the Middle East have disrupted global supply chains, further inflating costs.
Colder Weather: As temperatures drop, energy demand surges, particularly for heating, putting additional strain on an already tight market.
These factors have combined to create the highest energy prices in 2024, and the trend is expected to continue into the winter months.
The Impact of Rising Business Energy Rates in 2024
Businesses across the UK are facing increasing energy costs, with business energy rates in 2024 surging by as much as 16.38% in just the last month. Gas prices have climbed to 101.25p/therm, and electricity has reached £84.00/MWh, placing extra pressure on operational budgets.
To put this in perspective, wholesale gas prices were as low as 67.35p/therm in March compared to today's price of 101.25p/therm—a 50.3% increase. Electricity prices have also followed this upward trend, jumping from £60.50/MWh to £84.00/MWh, an increase of 38.8%.
For those businesses that proactively monitored the market and locked in lower rates during the dip in March, the benefits are clear. They’ve not only saved more than they initially expected but also safeguarded themselves from the sharp price increases we are seeing now.
"I've worked with a lot of energy brokers, and unfailingly, they just want a quick transaction after a 5-minute call. The Smart Energy Company sent us weekly pricing and shared sector insights for several months before we signed paper. How could we use anyone else? Also, they found the best pricing. We did check."
– Chris DuCousso, Director, Gym Owner
What Can We Expect for November 2024?
As we look ahead to November 2024, the energy market remains cautious, with prices continuing to rise as winter approaches. Month Ahead gas prices have risen from 98.21p/therm at the end of September to 104.74p/therm today. Electricity Month Ahead prices have similarly increased, from £88.38/MWh to £94.25/MWh over the same period.
The Day Ahead gas price of 101.25p/therm is currently just below the Month Ahead price of 104.74p/therm, indicating that while short-term factors like weather and geopolitical tensions are driving prices up, the market expects continued increases in the coming weeks.
Likewise, Day Ahead electricity prices of £84.00/MWh remain lower than the Month Ahead price of £94.25/MWh, reflecting short-term easing but an expected climb deeper into the winter months.
Why Acting Now Can Benefit Your Business
While it’s natural to wonder if prices might drop, waiting for them to stabilise could result in missing out on more favourable rates. As history has shown, energy prices tend to rise as we move into the colder months, and the recent upward trends suggest that locking in rates now can protect your business from further increases.
Proactive monitoring of the market and securing business energy rates ahead of time can lead to substantial savings. Those who locked in during previous dips have already seen significant benefits. If you wait too long, you may find yourself paying much higher rates as winter demand drives prices even higher.
How Monitoring Energy Prices Can Help You Save
Understanding and tracking energy prices in 2024 can provide your business with a strategic advantage. Monitoring the market allows you to identify the best time to act and secure the most favourable rates. For example, earlier in the year, businesses were able to lock in electricity rates at just 18p/kWh when prices were at their lowest.
At Smart Energy Company, we offer weekly market updates to help you stay informed about energy price trends, ensuring that you’re always ready to make the best decision for your business.
Act Now to Secure Your Energy Rates
Energy prices in 2024 are higher than they’ve been all year, and the market shows no signs of stabilising in the near future. For businesses, this means taking proactive steps to lock in contracts now and avoid further price increases. By securing your rates today, you can protect your business from the volatile energy market and ensure cost predictability for the months ahead.
Call to Action:
Ready to secure your business energy rates before prices rise even higher? Sign up for our weekly market reports here to stay informed, or request a free energy quote to see how we can help you lock in today’s prices for your business.
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