The weather, as you would imagine, can have an impact on energy prices and last year following a milder than normal November and a relatively mild December, was testament to this.
However, whilst milder temperatures resulted in a fall in demand for gas, wind levels were also down, which meant that additional gas was required for electricity generation. Following a peak for both gas and electric around beginning of October with the mild winter that is why prices came down slightly.
We’ve taken a look at 2018 energy prices and have found that there were large price movements in both directions throughout last year.
Electricity is measured in megawatt hours (MWH) and refers to the amount of electrical power used for one hour. Although electricity started the year at around £52 per MWH, it dipped in February to a low of approximately £49 per MWH but by October it had hit a high of £75 per MWH – a hike of 53%! Although electricity prices did soften in December (£61 MWH), they still ended the year at almost 20% higher than they started.
Whereas electricity is measured in megawatt hours, gas is measured in therms. On par with electricity, gas started the year at around £58 per therm, but by October had reached £81 per therm. A staggering increase of over 52%! As with electricity, the price did come down and by December was standing at £59 per therm.
There’s no doubt that the market has been extremely volatile and with Brexit around the corner there is no telling how prices might be affected in 2019.
Forward Energy Purchasing
Did you know that you can take advantage of energy prices when they are low and buy energy in advance? Firm pricing, also known as forward energy purchasing enables businesses to set an energy price for long-term planning and helps to avoid fluctuating market changes. As a business owner, this means no nasty surprises, as your rate will be fixed from month to month.
Reviewing historical energy usage will give insight into previous spend and what purchasing strategy will be best suited to your organisation.
As an independent, impartial consultancy, we work with businesses to assess existing contracts and identify where savings can be made. We then take care of all the paperwork, including the renewals, leaving you free to concentrate on your business. And of course, being independent, you can be sure that we are working in your best interest at all times.
We make no charge for our services and what’s more clients retain 100% of the savings realised!
Are you paying over the odds for your energy? What is your company’s energy strategy and when was the last time you reviewed your energy portfolio?
Contact us for a no obligation energy health check