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Writer's pictureTom McGlynn

Navigating Volatile Energy Markets: When and Why to Renew Your Business Energy Contract


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Timing, Trends, and Trust: The Smart Approach to Renewing Your Business Energy Contract


The volatile energy market can make the decision of when to renew your business energy contract a nerve-wracking one. But fear not—armed with the right insights and a customer-focused approach, you can navigate these turbulent waters. Here’s how.


The Seasonal Sway: When Should You Renew?

Seasonal trends have always played a significant role in energy pricing. Typically, prices tend to be lower during the summer months and higher in the winter. However, it's crucial to note that this is a general pattern, and numerous factors can disrupt it. The past 36 months have been particularly volatile, with global events such as the COVID-19 pandemic, the Russian war, and the Cost of Living Crisis creating ripple effects in the energy market meaning that market movements haven't exactly followed usual trends.


Keeping Up With Market Insights

Our regular market reports offer a valuable resource for staying ahead of the curve. These reports provide a comprehensive overview of energy prices, seasonal trends, and other influential factors. By keeping up-to-date, you’re better positioned to make an informed decision on your energy contracts. You can view the reports on a Daily, Weekly, or Monthly Basis.


Is it Always Cheaper in the Summer?

While it's generally true that summer often offers lower energy prices, the past few years have proven that we should always expect the unexpected. In a classic supply-and-demand scenario, prices tend to rise when demand outstrips supply. This is particularly true in winter, when both businesses and residential customers use more energy due to shorter daylight hours and colder temperatures. If the nation faces an undersupply of energy, prices will likely be inflated.


What Martin Lewis Says About Price Drops in October

The renowned financial expert Martin Lewis has confirmed that energy prices will drop in October. While his expertise is valuable and accurate for the residential energy market, it's essential to differentiate between the residential and business energy markets. The business market operates on live market movements, which means it can be more volatile and subject to immediate changes. In contrast, residential prices are usually more stable as reviewed at set intervals, taking into account what has happened in the wholesale market over the last quarter.


Taking a Gamble: Predicting Market Movements

When it comes to renewing your business energy contracts, unless you're a clairvoyant like Mystic Meg, predicting market behavior will always be a gamble. We all want the most cost-effective rates, but the best time to lock those in can only be determined in hindsight. That's where The Smart Energy Company comes in—we're committed to providing you with the most up-to-date, transparent information, helping you make the best decision possible.


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Why Choose The Smart Energy Company?

We at The Smart Energy Company put a premium on building client relationships over meeting monthly sales quotas. If the market shows signs of dropping, we'll advise you to wait. When it's surging, we provide daily updates to help guide your decision-making process.


Be cautious of other brokers who might use market conditions as a scare tactic, pressuring you to make snap decisions that may not be in your best interest. Remember, it's YOUR business, and the decision should always be yours. Our role is to provide expert advice and the best service packages, helping you navigate through market volatility.


The Bottom Line

Renewing your business energy contract is not just a routine administrative task; it's a significant decision that impacts your operating costs and, ultimately, your bottom line. In these uncertain times, guidance from a client-focused energy broker like The Smart Energy Company can be invaluable. We're here to provide timely market insights and unbiased advice, ensuring you get the best energy package suited for your needs.


Never feel pressured into agreeing on a contract—your business, your rules. But with our help, you can hopefully make the most informed decision, no matter how the market behaves.

Or get in touch on 0151 459 3388 | info@smart-energy.uk

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