News

Business Energy Market Summary
The business energy market remains volatile, with commercial energy prices continuing to trade above seasonal averages. Wholesale business gas prices and business electricity prices have been driven higher by a combination of weather-related supply constraints and ongoing pressure within the European gas market.

Last week's heatwave across Europe reduced electricity generation, particularly in France where nuclear power stations were forced to lower output due to high temperatures. At the same time, European gas storage levels remain below the seasonal average, while disruption to global LNG supplies caused by conflict in the Middle East continues to tighten supply.

Although wholesale energy prices could ease slightly as temperatures return to normal, the market is expected to remain firm over the coming weeks. Forecasts suggest another spell of hot weather early next week, which could increase electricity demand for cooling and place further upward pressure on commercial energy costs.

• What's Influencing Business Energy Prices?
  Reduced electricity generation from French nuclear power stations following last week's extreme heat.
• European gas storage remains below normal for this time of year, supporting higher business gas prices.
• Ongoing disruption in the Middle East has affected around one in five global LNG shipments since March, limiting supply.
• Weather forecasts indicate another period of warm weather next week, potentially increasing electricity demand and business electricity prices.
• Wholesale gas markets entered summer already under pressure after a colder-than-average winter significantly reduced European gas reserves

• Business Energy Market Outlook
• Commercial energy prices are expected to remain elevated in the short term, making this an important time for businesses to review their business energy contracts and procurement strategy.
• While prices may soften as temperatures fall, the wholesale energy market is likely to remain above seasonal norms for the next couple of weeks, particularly if further hot weather develops.
• Any unexpected supply disruption, geopolitical event or period of extreme weather could cause business energy prices to move quickly in either direction.

Businesses approaching contract renewal should continue to monitor the market closely. Working with an experienced business energy broker or commercial energy consultant can help secure competitive business electricity and business gas rates before further market movements occur.

Contact one of our friendly experts to talk about your renewal 01432 378690