Michael Dent, Managing Director at Inprova Energy on Energy Prices, Brexit and Contracts

Are business energy prices rising?

Double trouble could be in store for gas and electricity prices this winter due to gas supply problems and the Brexit effect – creating financial pressures for regional businesses.

Wholesale gas and electricity prices have jumped following news that the UK’s key gas storage facility could be shut down until Spring 2017. This will leave the country extremely tight on gas during the coming peak winter period.

Brexit effect

This problem is made worse by the Brexit effect, which has helped push prices towards nine-month highs due to the collapse in value of the pound. Because the UK is a net importer of gas and coal, which are traded in dollars, the slump in the pound could lead to higher energy prices in the long term.

Fix contracts early

The energy market looks very volatile indeed. We believe that local businesses who are due to renew fixed contracts now and in 2017, should conclude negotiations as soon as possible. While nothing is ever certain in terms of energy market forecasting, there’s every indication that the market is rising, so risk averse businesses would be better to settle soon.

Flexible contracts can be safer

Flexible contracts can provide the best protection against market fluctuations by allowing energy to be contracted in chunks over a period of time, rather than fixing at one point and having to take the price that exists at that moment.

Further information: www.inprovaenergy.com

Contact our Bexley Hill office on: 0330 166 4444