Energy Prices have recently dropped
At the beginning of 2023, energy prices dropped significantly. This was largely due to a downturn in the global economy, which caused a decrease in demand for energy and resources.
Since the war between Russia and Ukraine, prices have risen a lot. However, the threat of Russian dominance over the gas market has been greatly reduced. As a result, energy prices have stabilized, with no fear of sudden spikes or drastic drops due to geopolitical tensions.
This has mainly been due to Europe and the EU having other import options as well as good storage levels in the EU. The European Union can now access alternative energy sources, such as liquefied natural gas (LNG) from the United States and other countries. This has allowed them to diversify their energy portfolio, which has helped to keep prices stable.
What has the market's reaction to this been?
The drop in wholesale energy prices has had a significant impact on the energy market. This has been reflected in a steep decline in average electricity and gas prices, with households across Europe seeing reductions of up to 20% compared to the same period last year. In addition, this has led to increased competition among suppliers; with more providers entering the market and offering better value tariffs.
The drop in energy prices has had a positive effect on consumers, as it has led to more switching and therefore more competition in the market. Energy companies are now competing for customers and this is driving down consumer prices. This means that people can compare for their next renewal and switch providers if they find a better deal elsewhere.
What does this mean for renewing your contract?
The drop in energy prices presents a great opportunity for businesses to get a more competitive tariff and better deals with suppliers. Businesses are now in a position of power when it comes to negotiation as they can shop around for providers offering the best value offers. The increased competition among suppliers has resulted in lower costs for businesses, giving them access to more competitive energy deals.
Businesses should take this opportunity to review their contracts and shop around for better value tariffs. Not only will this offer financial savings, it may also provide a more secure energy supply in the long term. It is important to remember that providers typically have different exit fees if you decide to switch before the end of your contract, so make sure to read the terms and conditions carefully.
Overall, lower energy prices are good news for businesses. They can enjoy more competitive business energy deals and save money on their energy costs. It is important to remember that the prices may not stay low forever, so it's a good idea to review your contracts now and take advantage of the current market. This is especially true for businesses that are looking to renew their contract in the near future.
To shop around for the most competitive business energy prices, why not compare gas and electricity with us today? Online Energy work with over 20 of the UK's top business energy suppliers. Don't wait to renew until prices go up again!