All crises create winners and losers and the coronavirus pandemic is no different when it comes to how much businesses are paying for their energy.
Compare electricity and gas prices from the period before the pandemic took hold and adversely affected so many lives, to today’s market and there is no comparison.
With the global economic slowdown came a vast reduction in energy consumption – by as much as 38% in April – as factories and offices shut up shop, and prices plummeted as a result.
Summer 2021 electricity prices took a massive hit, falling by 32 per cent from the start of October until May 20, dropping from £55.01 to £37.50, while Summer 2022 swung by 24 per cent.
In terms of gas, there were equally big fluctuations over the near eight-month period. As of May 20th, Summer 2021 prices had gone from £53.34 to £30.23 – a 43 per cent reduction.
Our team of expert energy consultants constantly analyse the energy markets to help clients try and strike deals with suppliers at just the right time.
Whilst this is clearly not an exact science all the indications at present are that this is a good time to review your energy contract renewal options.
We are slowly starting to see the forward prices recover as the lockdown restrictions start to ease, but these costs are still low based on wholesale costs back in October/November 2019.
That lag won’t last forever though, and as more and more people go back to work, there will be an inevitable knock-on effect on prices as demand for energy increases.
If you would like to talk to us about your renewal options, please give us a call on 01225-867722.