A combination of cold, calm weather has increased demand for heating and electricity generation, while supply-side restrictions have pushed up risk premiums.
Winter outlook
European gas storage is currently at 82% and is expected to decline steadily through winter. Projections indicate storage levels will drop to 35% by 31st March 2025, though a severe winter could reduce this to 10–15%.
Unusually, gas prices for Summer 2025 are higher than those for Winter 2025, reflecting concerns about limited availability over the next 6–9 months. However, the longer-term outlook remains more positive.
Navigating the current market
| Commodity cost | Av unit rate | Av s/c | ||
|---|---|---|---|---|
| Electricity | 31/10/2024 | 8.2p | 24p | 65p |
| 14/11/2024 | 8.8p | 23.1p | 50p | |
| 05/12/2024 | 8.8p | 24.6p | 70p | |
| Gas | 31/10/2024 | 3.4p | 6.1p | £1.22 |
| 14/11/2024 | 3.7p | 6.6p | 32p | |
| 05/12/2024 | 3.8p | 7p | 65p |
The past few months have seen steady increases in both commodity and contract costs, with further challenges arising from certain “low-cost” contracts proving unexpectedly expensive due to hidden charges.
As we move deeper into winter, the tension between supply and demand is likely to increase price volatility. Businesses approaching contract renewal face a key decision: balancing the certainty of fixed costs against the potential for future price reductions.
How Nationwide Energy Can Help
Making informed decisions in this volatile market requires comprehensive advice. Nationwide Energy’s field and office teams offer detailed consultations to help businesses-
- Understand the merits and risks of various supply options.
- Evaluate contract terms to avoid hidden costs.
- Access the latest market insights for informed decision-making.
Providing customers with the time and information they need to choose the best energy solutions for their business.
Contact Us Today
📞 Tel: 02476 328995
📧 Email: info@nationwide-energy.co.uk
🌐 Website: Nationwide Energy Free Guides