Analysts have predicted that the price of wholesale gas could rise again this winter across Europe and effecting the UK market.
Gas prices have recently fallen in both Asia and Europe and demands have been lower since a mild winter. This has been helped by not only the weather but there also strong inflows of natural gas and stockpiling. Along with this demand for gas has also been at bay.
Prices dropped for winter 22-23 due to gas demand dropping by 7.5% compared to the previous year. However, prices remained higher than usual last year due to Russia’s invasion of Ukraine and the Kremlin starving Europe of gas. This caused turmoil in international gas markets.
Unfortunately, it is expected that the lower prices we have seen at the beginning of 2023 are not likely to last. Demand across Asia is predicted to rise as their economy bounces back from the covid restrictions that were in place for most of 2022.
The winter gas prices will also depend on the weather and the demand for gas from households and businesses. If this winter is not as mild as last, this will push up demand. These factors would then cause a sharp rise in winter prices. Last year when gas prices fell Europe was in a better position as their storage tanks were at their capacity and mild temperatures kept demand low.
Even if European storages do meet their targets there is still only so much capacity these storage sites can hold, which could be a stretch over the winter months.
What does this mean for businesses?
Businesses have already had a tough time when it comes to energy bills, many companies would not be able to survive another year of high gas and electricity bills.
If you know that your business energy tariff is due for renewal in winter 23-24, it might be best to look at your options before we see a rise in energy prices. Currently, prices are still lower than they were at this point last year. However, due to the factors above, we know this is not going to last long.
If you wait to sign your next energy contract until prices have risen, then you could potentially be costing your business thousands. At Resolve Energy we have a team of energy consultants with inside knowledge of the energy market. We not only help find the cheapest energy contracts for your business but also suggest the best times for you to sign your next contract. Get in touch with us today to see how we can help you.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.