With Gas Prices Rising, Fix Your Next Energy Contract Today
In recent weeks, the gas market has shown a noticeable upward trend, with prices steadily increasing since the start of August. This rise signals a shift in market dynamics, making it crucial for businesses to start reviewing their future energy needs now. At Smart Energy Company, we leverage over a decade of experience to help businesses navigate these changes and secure the best energy deals available. By planning ahead and considering future energy contracts, businesses can make informed decisions to safeguard against potential cost increases as we head into the colder months.
Recent Gas Market Trends: A Noticeable Increase
Over the past month, the wholesale day-ahead gas market has shown a consistent rise in prices. Here’s what the latest data reveals:
Early August Prices: At the beginning of August 2024, gas prices were around 78.70 p/th. However, a steady increase has been observed throughout the month.
Mid to Late August Surge: By the end of August 2024, prices had climbed to 93.00 p/th, representing a significant increase of over 18% in just a few weeks.
This upward trend suggests that gas prices could continue to rise as we move closer to winter. For businesses, this means it’s a prudent time to start reviewing energy contracts and considering fixing future rates to avoid the impact of potential further increases.
A Year in Review: Understanding the Bigger Picture
While the recent rise in gas prices is notable, it’s essential to consider the broader trends over the past year to understand the market dynamics fully:
Winter 2023 Peak: Gas prices peaked during the winter of 2023, with prices reaching as high as 138.00 p/th in October. The high demand for heating and geopolitical factors contributed to these spikes.
Spring and Early Summer 2024 Dip: Moving into the spring and early summer of 2024, prices saw a decline, with some of the lowest prices recorded around April 2024, at approximately 62.50 p/th. This was due to a combination of reduced demand and improved supply stability.
Fluctuations and Recent Uptick: Despite the general decline in spring, the market remained volatile, with prices fluctuating due to ongoing economic and geopolitical uncertainties. The recent surge in August is a reminder of how quickly market conditions can change.
Why Are Gas Prices Rising?
Understanding the reasons behind the recent increase in gas prices can help businesses make informed decisions:
Increased Demand: As businesses ramp up production post-summer and prepare for winter, energy demand naturally increases, pushing prices up.
Supply Chain Constraints: Global supply chain issues, including reduced gas imports, can create supply shortages, leading to price hikes.
Geopolitical Factors: Political tensions and instability in gas-producing regions can disrupt supply chains, resulting in price volatility.
Benefits of Reviewing and Fixing Energy Contracts Now
Given the recent trends and the possibility of continued price increases, reviewing and potentially fixing your energy contract now offers several critical benefits for businesses:
Planning Ahead for Stability: By reviewing your future energy contracts now, businesses can anticipate changes and plan for cost stability, avoiding the impact of potential price hikes.
Securing Current Rates for Future Savings: Fixing energy prices now, even if your contract is due to end in 6 to 12 months, can provide cost predictability, helping businesses budget more effectively.
Informed Decision-Making: By understanding market trends and consulting with experts, businesses can make informed decisions that align with their financial goals and operational needs.
How Smart Energy Company Can Help You Prepare for Future Energy Needs
Partnering with a trusted energy broker like Smart Energy Company ensures that you receive the best advice and options available. Here’s why working with us makes a difference:
Expertise You Can Trust: With over a decade of experience in the energy industry, we offer unmatched insights and guidance. Our team monitors the market closely, providing you with the latest updates to make informed decisions. We work with over 20 suppliers to find the best deals that suit your business needs.
Tailored Solutions for Your Business: We understand that every business is unique. Our tailored energy plans are designed to match your specific consumption patterns and financial goals. We provide transparent contracts, ensuring you know exactly what you’re paying for, including our commission.
Dedicated Support Throughout the Process: From the initial consultation to ongoing contract management, our customer support team is here to assist you every step of the way. We offer market updates and advice to help you decide when to fix your energy prices, ensuring you always make the best decision for your business.
Competitive Quotes: Our access to competitive quotes often means you can secure rates lower than your supplier's renewal offers, even with our commission included. This ensures you get the best possible rates without the stress of navigating the market alone.
For more information on current market trends, visit our weekly energy market reports and daily updates.
Conclusion: Prepare for the Future by Reviewing Your Energy Contracts
The recent rise in gas prices highlights the importance of proactive energy management. By reviewing your future energy needs and considering fixing prices now, businesses can protect themselves from potential increases, ensuring stability and predictability in their energy costs. At Smart Energy Company, we are here to help you navigate these market changes and secure the best rates for your business.
Start preparing for the future by reviewing your energy needs. Contact Smart Energy Company today to discuss your options and secure a quote for your business. Fill in our form for a free business energy quote and let us help you make informed decisions to maximise your savings.
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