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

Market Overview: Gas Prices Drop to Lowest Levels Since December 2024

Market Overview: Energy Prices Continue to Drop

Gas and electricity prices fell again last week, continuing the trend seen in recent weeks. Gas prices have now dropped below 100p/therm for the first time since December 2024, while electricity prices are at their lowest level in months.

📉 What happened?

• Gas demand dropped due to warmer weather and strong LNG supply.
• Electricity prices fell as higher wind power generation reduced the need for gas-fired power.
• Economic concerns and geopolitical developments also influenced market movements.

The big question for businesses: Should you secure a new contract now, or wait?

A Quick Look at This Week’s Energy Market

Why Are Prices Falling?

💨 Warmer Weather → Reduced heating demand has lowered gas consumption.

🚢 High LNG Supply → The UK received multiple LNG shipments, keeping supply strong.

⚡ Increased Renewable Generation → Higher wind output meant less reliance on gas-fired electricity, bringing electricity prices down.



🌍 Global Economic and Geopolitical Factors → The recent U.S.-Ukraine developments and OPEC+ decisions have added uncertainty but have not yet pushed prices up.

What Does This Mean for Your Business?

📅 If your contract is ending in the next 3 months → Now is a good time to explore fixed contracts. Prices have dropped, but the market remains unpredictable.

📊 If your contract isn’t due until later in 2025 → Monitor the market closely. If this downward trend continues, there could be more opportunities to secure a lower rate.



⚠️ If you’re out of contract → Act quickly. Standard variable rates are still much higher than fixed rates, so securing a deal now could save your business money.

What’s Likely to Happen Next?

📌 Gas Prices: May stay low if temperatures remain mild and supply remains strong.

📌 Electricity Prices: Could fluctuate, depending on renewable generation levels.



📌 Global Risks: Any unexpected supply disruptions or geopolitical shifts could cause sudden price spikes.

Oil Market Update

Oil prices fluctuated last week, influenced by OPEC+ decisions, U.S. tariff concerns, and economic outlooks.

12-Month Energy Market Trends

🔍 Looking at the past year, prices have been on an upward trend, but the market has stabilised in recent weeks.

📈 Key trends from the last 12 months:

✔️ Gas prices peaked in December 2024 but have since fallen by over 30%.
✔️ Electricity prices have followed a similar pattern, reflecting gas market movements and renewable output.
✔️ Price spikes in late December and January were temporary but showed how quickly markets can shift.

📊 (See the 12-month market graph below 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 can track the market for you and notify 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 dropped significantly, but the market remains unpredictable. If you’re unsure whether to renew now or wait, Smart Energy Company can provide a no-obligation 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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