Photo courtesy of Matthew HenryCommercial energy and sustainability consultancy
Advantage Utilities, has released its
Q3 2024 Energy Market Report and is urging businesses to take advantage of favourable market conditions by locking in lower commercial energy prices ahead of future price spikes.
Seven in 10 companies expect to be less competitive over the next two years due to high energy costs, according to recent
PwC research. Energy experts at Advantage Utilities are encouraging businesses to hedge future volume now, in order to mitigate the impact of any future price rises which could prevent economic stability.
Thankfully, the first half of 2024 has ushered more stability into energy markets in light of cheaper gas prices, healthy European storage levels expected throughout winter, and the expected landslide UK election result which had already been factored into the market.
However, underlying pressures remain, with geopolitical tensions across the world at risk of pushing up prices, with inflammatory actions committed by Russia in Ukraine and China’s against Taiwan continuing to loom large in global energy markets. This has made future energy trends uncertain and extreme temperatures in Asia have also driven up LNG demand from air conditioning and cooling systems, with imports reaching record highs and predictions of strong global oil demand growth this year has already pushed oil prices up further.
Advantage Utilities CEO Andrew Grover urged businesses to be cautiously optimistic about developments in commercial energy markets, stating: “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.”