Weekly Energy Market Update: 17th - 21st February 2025

Market Overview: Energy Prices Drop – Is Now the Time to Fix?

Good news for businesses – gas and electricity prices have fallen sharply this week due to lower demand, milder weather, and strong supply.

The big question is: Will prices stay low, or is this just a temporary dip? Here’s what you need to know to make the right decision for your next energy contract.

A Quick Look at This Week’s Energy Market

📉 Gas prices: 117.62p/therm (down 17.5% from last week’s 138.53p/therm)
📉 Electricity prices: £97.14/MWh (down 22.3% from last week’s £125.03/MWh)

🔹 Why have prices dropped?

• Milder weather → Lower demand for heating.
• Strong wind power → Less need for gas-fired electricity.
• Stable supply → LNG shipments and Norwegian gas flows have remained strong.
• Talks of a Russia-Ukraine peace deal → Eased concerns over global supply disruption.

Despite these price drops, markets remain unpredictable, so it's crucial to keep a close eye on the trends.

What This Means for Your Business

💡 If your contract is ending soon (next 3 months):
→ Now could be a great time to lock in rates before prices rise again.

📅 If your contract ends later in 2025:
→ Keep monitoring the market. Prices may stay low, but unexpected events could cause a spike. We can track prices for you and notify you when it’s the best time to renew.

⚠️ If you’re currently out of contract:
→ You’re likely paying far higher rates than a fixed contract. The sooner you switch, the more you could save.

What’s Likely to Happen Next? (Market Forecast: 26th Feb - 1st March 2025)

📉 Gas prices: Could remain low if mild weather continues, but sudden supply issues could cause a rebound.

📉 Electricity prices: May stay below £100/MWh if wind power remains strong.

⚠️ Biggest risk? A sudden cold snap or supply disruption could quickly push prices back up.

Markets react quickly to global events, so waiting too long could be a risk.

Oil Market Update

Oil prices have also been volatile, driven by geopolitical tensions and shifting supply concerns.

📊 Brent crude: £76.48/barrel (up slightly from last week)
📊 WTI crude: £72.57/barrel

🔹 Key factors affecting oil prices:

✔️ Russia-Ukraine peace talks → Could ease supply concerns and stabilise prices.
✔️ U.S. tariffs on energy imports → May impact oil flow and prices in the coming months.
✔️ OPEC+ decisions → Any changes in production targets could shift the market.

💡 Why does oil matter?

Oil prices impact transportation, manufacturing, and even gas and electricity costs. Keeping an eye on oil trends can help businesses prepare for future energy price movements.

12-Month Energy Market Trends

Looking at the past year, energy prices have been highly unpredictable.

📊 Key trends:

✔️ Gas prices have dropped from last year’s highs but are still higher than pre-2022 levels.
✔️ Electricity prices have remained above £100/MWh for most of the year.
✔️ Periods of lower wind generation and supply disruptions have caused sudden price spikes.

🔍 What this means for your business:

Even though prices are lower now, they can rise suddenly. Securing a fixed contract while prices are down could be a smart move.

(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 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 this week, but the market remains unpredictable.

❓ Not sure whether to renew now or wait?
We offer a no-obligation review to help you make the best decision for your business.

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

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