It has been predicted that Gas prices are likely to stick for the next couple of years. There have been many factors that have contributed to higher gas prices such as distributions to the supply chain and higher liquified natural gas, both sending the UK energy industry spiraling.
It has been estimated that energy markets will be tighter going into 2024/2025 with it being assumed that oil could be $70 a barrel which reflects higher risks to supply. As we are part of a global market the UK gas prices will inevitably also rise. Even with the North Sea oil and gas industry, it is said that the UK will be unable to shield itself from prices.
The EU has committed to raising storage capacity levels to 80% ahead of the winter. However, this could be unlikely especially with the increasing pressure to pay for gas in roubles as the kremlin demands. The EU currently relies on Russia for around 40% of gas exports.
Elevated prices could make rebates and money-saving schemes more difficult. This is because lowering or spreading the cost for consumers relies on markets eventually easing. The consumer price cap has already been hiked and could further increase by the end of the year. This could lead to 30-40% of households ending up in fuel poverty by this winter.
This means for our customers that if you are putting off gas renewals till prices drop, this might not be ideal since it is likely that prices are not going to recover as evidence suggests.
Therefore, when looking at acquisition or renewal of your gas contract our energy experts can advise you on the best time to do this. This decision will be based on market changes. However, we will always advise that you do not wait for prices to hike up even further before securing your contract.