Clear election result stabilises energy market but price rises could be around the corner, energy experts warn
Should businesses to take advantage of favourable market conditions by locking in lower commercial energy prices ahead of future price spikes.
With seven in ten companies predicting reduced competitiveness over the next two years due to rising energy costs, it's important for businesses to act now. At Advantage Utilities, our energy experts recommend hedging future energy volumes to mitigate the impact of potential price increases and ensure economic stability.
The first half of 2024 has brought increased stability to energy markets, thanks to lower gas prices, robust European storage levels expected throughout winter, and the anticipated UK election result, all of which have been factored into the market.
Nevertheless, significant pressures persist. Geopolitical tensions, including Russia's actions in Ukraine and China's stance on Taiwan, continue to pose risks to global energy markets. Additionally, extreme temperatures in Asia have heightened LNG demand for air conditioning and cooling systems, driving imports to record highs. Predictions of strong global oil demand growth this year have further pushed up oil prices.
Andrew Grover, our CEO of Advantage Utilities, advises businesses to be cautiously optimistic about the current developments in commercial energy markets. He states: “Businesses have an important opportunity to secure cheaper energy into the medium-term through reassessing their energy procurement strategies to factor in lower energy prices at present. Any additional stability in markets should be welcomed, however, businesses must also consider the impact of any international conflicts threatening commercial energy security which is why hedging future volume now is a crucial step for businesses to consider today.”
Contact us:
Advantage Utilities
If you have any questions or need further information, please feel free to reach out to us. Our team is here to support you with all your commercial energy and utility needs.
You can also fill out the contact form here, and one of our representatives will get back to you as soon as possible.
Thank you for your interest in Advantage Utilities. We look forward to speaking with you.