The volatility of the energy price market was brought into sharp focus in March.
With homeowners and business owners turning up the heating to beat the big freeze, demand threatened to outstrip supply, prompting National Grid to issue its first gas deficit warning since its introduction in 2012.
It was the ‘perfect storm’ predicted by industry experts back in August when Centrica took the decision to fully close its Rough storage site, off the Yorkshire coast, due to safety concerns.
Until it was taken offline, Rough accounted for more than 70 percent of the UK’s gas storage capacity and could meet 10 percent of daily peak winter demand for nearly three months.
Fears that the UK would become more dependent on imports and vulnerable to price hikes in the winter months came to pass as same-day delivery prices tripled at one point to reach a 12-year high.
For businesses that do not want to be exposed to such volatility, Energy Management recommends Fixed-Priced energy contracts.
Fixed-price contracts are longer-term energy procurement arrangements that offer businesses greater security, planning and budgeting.
Other businesses may be less risk-averse and willing to use fluctuations in the energy market to their own advantage, in which case more flexible options are available.
If you would like to talk to one of our team about the options available, please give us a call on 01225-867722