Understanding the Current Energy Landscape
In the world of cheaper business energy, understanding the market's ebb and flow is crucial. Recent market shifts could be your golden opportunity to secure affordable business energy
The Impending Impact of Norwegian Gas Facilities Maintenance
One key factor to consider is the scheduled maintenance of Norwegian gas facilities in August. These facilities play a vital role in supplying gas to the UK, and their temporary shutdown could lead to a spike in energy prices. For businesses seeking cheaper business energy, this is a development to watch closely.
Recent Market Fluctuations: A Lesson from June and July
Interestingly, we've already seen a preview of this impact. Despite having a healthy amount of storage in the UK, the market experienced increases when the Norwegian facilities had outages during the months of June and July. This happened after a steady decline in prices from January 2023 onwards. It's a clear demonstration of how sensitive the market can be to changes in supply, even when storage levels are robust.
Take a look at the graph below. It clearly illustrates the price fluctuations we experienced during the June and July outages at the Norwegian facilities. Despite having a healthy amount of storage in the UK, the market reacted to the reduced supply, underscoring the sensitivity of energy prices to changes in supply. This visual representation underscores why now is the time to act for securing cheaper business energy.
The Uncertainty of September: What to Expect
Once the Norwegian facilities are back online in September, it's uncertain how quickly they'll ramp up production and what impact this will have on prices. For those seeking cheaper business energy, this period of uncertainty could present both challenges and opportunities.
The Winter Effect: Rising Demand and Dropping Storage Levels
As we transition into the colder months, energy demand typically increases. The darker nights draw in, businesses and households alike use more energy, and our storage levels drop. This increased demand often leads to a rise in energy prices, making cheaper business energy harder to secure.
Why Now is the Ideal Time to Secure Your Energy Contract
Given these factors, if your business has a contract due between now and March 2024, this period of uncertainty could significantly impact your ability to secure cheaper business energy. While we can't predict with certainty what will happen in the coming months, we can say that now may be the best time to lock in cheaper business energy rates.
How The Smart Energy Company Can Help You Navigate These Uncertain Times
At The Smart Energy Company, we're committed to helping businesses navigate these uncertain times. We can provide expert advice on your energy contract and help you secure the best possible prices. Don't wait until it's too late - contact us today to find out how we can help your business secure cheaper business energy.
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