The weather can often play an important factor in how much energy consumers pay for their bills. For example, extreme weather often puts a strain on the energy market. This is usually due to higher gas demand for heating in the winter months. However, in the summer months, the weather often puts a strain on supplies, this could be due to balancing issues or a lack of energy supply due to the heat.
Energy prices this summer have gone down.
Recently energy prices have dropped massively compared to summer 2022 levels. Last year in August energy prices in the UK peaked, this was mainly due to geopolitical issues. Russia’s strain on EU countries as they majorly cut down on gas exports led to huge prices in the energy market for UK consumers.
However, last year the EU managed to build up gas storage and replace most Russian pipeline gas with other sources. This led to prices beginning to drop over winter and the beginning of 2023.
This has allowed the UK to be in a much better position for this summer as energy prices are currently at their lowest, they have been.
Price rises during heatwaves last summer.
Although energy prices have dropped now, you shouldn’t expect them to stay at this level. Last year the war between Russia and Ukraine put a huge strain on the global energy market. However, this was not the only factor causing higher energy prices.
Extreme heatwaves not only put pressure on the national grid ESO in the UK but also caused issues for some generators across the EU causing a lack of exports to the UK.
Therefore, if we see a repeat of last year this could cause wholesale prices to begin to rise again, meaning you could see higher prices towards the end of summer.
Why do prices remain higher than in pre-covid times?
Although most economies have bounced back since Covid has ended and the war has settled down, these geopolitical issues have changed a lot in the way different markets move and work.
As the UK still doesn’t have very high energy security, the market is still very volatile meaning that prices are not very stable and external factors can affect them very easily. This is mostly since the UK market still relies on a lot of expensive imports from other countries.
There are still a lot of system changes needed in the UK market before we can rely on UK renewable energy.
How your business can stay prepared?
To stay on top of your energy bills this summer it would be best for your business to stay on top of when there are wholesale price rises or drops.
If your business is due to renew its energy contract in the next couple of months, it is best to do this now whilst prices are at their lowest point they have been for a long time.
If you would like any support or guidance on your business energy bills today, then why not get in touch with us today? Additionally, if you would like to start looking at how much prices have gone down, then why not get a free quote from us today?
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.
