Weekly Energy Market Update: 10th - 14th February 2025

Market Overview: Another Volatile Week as Gas Prices Surge Again

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

A Quick Look at This Week’s Energy Market

• Gas prices: 138.53 p/therm (up from 133.92 last week, a 3.4% increase)
• Electricity prices: £125.03 / MWh (up from £115.34 last week, an 8.4% increase)

Gas prices continued their upward trend, reaching new highs as colder weather increased demand and supply issues added pressure. Electricity prices also climbed, driven by lower wind generation and a higher reliance on gas-fired power.

Why Are Prices Rising?

• Colder temperatures increased gas demand and limited storage withdrawals.
• Lower wind speeds led to more gas-fired power generation, raising electricity costs.
• Supply constraints included Norwegian pipeline outages and fluctuating LNG sendouts.
• Geopolitical instability added uncertainty, influencing global energy markets.

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 consider fixing your rates. Prices are still volatile, and waiting could lead to higher costs.

📅 If your contract isn’t due until later in 2025 → Monitoring the market is key. Some forecasts suggest potential dips later in the year, but uncertainty remains high.

❗ If you’re currently out of contract → Act fast. Act quickly. Out-of-contract rates are significantly higher, and delaying could result in rising costs.

What’s Likely to Happen Next? (Market Forecast for 17th - 21st February 2025)

📈 Gas prices may remain elevated due to continued cold weather and potential supply issues.

⚡ Electricity prices could fluctuate depending on wind output. If wind generation improves, prices may stabilise.

🌍 Geopolitical uncertainty remain a key factor, with potential disruptions in gas supply from Norway and ongoing global tensions.

Biggest Risk? Uncertainty.

The market remains highly reactive to supply disruptions and global events, making it difficult to predict price movements with certainty.

Oil Market Update

Oil prices have shown volatility due to geopolitical developments and economic concerns.

📊 Brent crude: £75.02/barrel (down slightly this week)
📊 WTI crude: £71.20/barrel

🔹 Key factors affecting oil prices:

✔️ US tariffs on energy imports could disrupt supply chains and impact global pricing.
✔️ OPEC+ productions decision will play a crucial role in setting future oil prices.
✔️ Economic uncertainty in China and the US continues to influence global demand.

💡 Why does oil matter?  Oil price movements impact gas and electricity prices, influencing overall energy costs for businesses.

12-Month Energy Market Trends

🔎 Looking at the past year, market volatility remains a key theme.

📊 Key trends from the past 12 months:

✔️ Gas prices were as low as 70 p/therm last summer but are now over 138 p/therm.
✔️ Electricity prices have consistently remained above £100/MWh in recent months.
✔️ Pricing spikes occurred due to lower wind generation and supply constraints.

🔍 What this means:

• Prices remain well above last year’s lows. If this trend continues, locking in a fixed rate now could help mitigate the risk of future increases.

(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 remain volatile, with both gas and electricity costs climbing. While short-term fluctuations may occur, the longer-term trend suggests continued uncertainty.

If you’re unsure whether now is the right time to renew, Smart Energy Company offers 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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