Weekly Energy Market Update: 03rd - 07th February 2025

Market Overview: Volatility Continues as Gas Prices Hit Yearly Highs

Weekly Energy Market Update: 3rd - 7th February 2025

A Quick Look at This Week’s Energy Market

🔹 Gas prices: 133.92 p/therm (up from 127.25 last week, a 5.2% increase)
🔹 Electricity prices: £115.34 / MWh (up from £107.42 last week, a 7.4% increase)

Gas prices have reached their highest levels in months, while electricity costs remain well above £100/MWh.
Despite occasional dips, the overall trend is upward, and the energy market remains highly volatile.

Why Are Prices Rising?

• Gas demand has gone up due to colder weather, and supply has been less reliable.
• Electricity prices have risen as lower wind speeds meant more power had to come from gas-fired generation.
• Geopolitical factors continue to add uncertainty, making markets more volatile.

But the big question is—should you lock in your next energy contract now, or wait?

Should You Lock In Your Next Energy Contract?

💡 If your contract is ending in the next 3 months → Now is a good time to look at fixed deals. Prices are still rising, and with market uncertainty, securing a rate now could protect you from further increases.

📅 If your contract isn’t due until later in 2025 → Monitor the market closely. Prices are climbing, but some forecasts suggest we could see a dip later in the year. We can track the market for you and alert you when the best time to switch comes.

❗ If you’re currently out of contract → Act fast. Out-of-contract rates are much higher than fixed rates, and the longer you wait, the more you could end up paying.

What’s Likely to Happen Next? (Market Forecast for 10th - 14th February 2025)

📈 Gas prices could increase further if temperatures stay low and storage withdrawals continue.

⚡ Electricity prices may ease slightly if wind power output improves, but overall, costs are expected to stay above £110/MWh.

🌍 Geopolitical uncertainty remains a key risk—global events could push prices even higher.

Biggest Risk? Uncertainty.



Markets are reacting quickly to global events, making waiting a gamble.

Oil Market Update

Oil prices have also seen significant volatility over the past week due to political and economic uncertainty.

📊 Brent crude: £74.29/barrel (down slightly this week)
📊 WTI crude: £70.61/barrel

🔹 Key factors affecting oil prices:

✔️ US tariffs on energy imports could disrupt supply chains.
✔️ OPEC+ is expected to increase production in April, which could stabilise prices.
✔️ Global demand remains uncertain due to economic concerns in China and the US.

💡 Why does oil matter? Oil prices can influence gas and electricity prices, as higher oil costs can push up overall energy costs.

12-Month Energy Market Trends

🔎 Looking at the past year, we’ve seen significant volatility. Gas and electricity prices dropped in mid-2024 but have steadily climbed back up.

📊 Key trends from the past 12 months:

✔️ Gas prices were as low as 70 p/therm last summer but are now over 133 p/therm.
✔️ Electricity prices have consistently remained above £100/MWh in recent months.
✔️ Spikes in pricing occurred during periods of low wind generation and supply constraints.

🔍 What this means:

• Prices are well above last year's lows and continue to fluctuate.
• Businesses should be aware that locking in a rate now could help avoid further increases if this trend continues.

(See the attached 12-month market graph for a full breakdown of movements.)

Next Steps: What Should You Do Now?

✔️ Send us your latest bill – we’ll review your options and see if fixing now makes sense.
✔️ Not ready to switch? Let us track the market for you – we’ll alert you when prices move in your favour.
✔️ Get expert guidance – we work with over 28 suppliers to find the best deal for your business.

📩 Contact us today to discuss your energy contract options and secure your business against further price increases.

Final Thoughts

Energy prices have risen significantly over the past year, and while they may stabilise in the short term, the long-term trend is still uncertain.

If you’re unsure whether now is the right time to renew, Smart Energy Company can provide a no-obligation energy review to help you make an informed decision.

📧 Get in touch today to explore your options and ensure your business is on the best possible energy contract.

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