The cost of living crisis has affected most of us, especially when it comes to our energy bills, but as we enter Spring the energy landscape is presenting some unexpectedly warm news for consumers and businesses alike. In our latest blog post, we dive into the latest trends in the energy market brought to you by our trusted partner Indigo Swan, that are shaping a positive outlook for the months ahead.
Lower Prices on the Horizon
Firstly, something that has everyone talking is that gas and electricity prices are finally taking a little dip. After what feels like ages watching those numbers go only one way (up, of course), we’re seeing a bit of a break. It’s like a little ray of sunshine for both our wallets and our spirits. This shift comes after a bit of a rollercoaster ride, with all those ups and downs driven by world events, and even the weather playing its part. But it looks like the energy market is bouncing back and giving us a bit of relief with lower prices. It’s a breath of fresh air and a nudge in a happier direction for what’s to come in the energy world.
A Well-Stocked Europe
Turning our focus to Europe, you’ll be pleased to hear that their gas storage tanks are looking strong, currently at a solid 79% capacity. That’s a big jump from where they stood in 2022, and they’re even surpassing last year’s levels. With such ample storage capacity, Europe is gearing up for spring with confidence, knowing they have plenty of gas reserves to rely on.
The Winds of Change and Connectivity
Now, let’s talk about electricity. Gas has been pulling some serious weight, making up a whopping 50% of our generation lately, especially since wind power has been taking a bit of a breather. But hold onto your hats, because things are shifting, due to the Viking Link Interconnector with Denmark being a game-changer. This smart connection has been zipping energy back and forth between nations, and there have even been days when we’ve sent more electricity over to Europe than we’ve received. It just shows how interconnected and resilient our energy setup is.
The Global Stage and Its Local Impacts
Taking a look at the big picture, recent tensions in the Middle East, especially the situation in Gaza, could shake things up a bit in the world of gas and oil supplies. But, it’s not all doom and gloom. The steady stream of LNG deliveries and the proactive efforts of different countries to secure shipping routes through the Suez Canal have helped ease some of those worries. This whole situation drives home the point that what’s happening on the global stage can have a direct ripple effect on our local energy markets and what we pay at the pump.
Empowering Customers in Uncertain Times
Given these developments, Indigo Swan recommends that customers, particularly those whose contracts are wrapping up in early 2024, take a moment to reassess their positions. With the current market conditions presenting a positive landscape, now might just be the perfect time to lock in some more preferred energy contracts, making use of those lower wholesale prices. Also, with the switch from the Energy Bill Relief Scheme to the Energy Bills Discount Scheme back in April 2023, there are even more options available for customers to navigate their energy costs with skill, despite the changes in levels of support. It’s all about being savvy and making the most of the opportunities at hand.
The Forecast: Cautious Optimism
As we look to the future, there’s a sense of cautious optimism in the air. With wholesale prices dipping, storage levels sitting comfortably high, and exciting infrastructure projects like the Viking Link in the works, things are looking pretty promising for the energy market. But, and it’s a big but, we can’t ignore the fact that global events have a knack of throwing us curve balls when we least expect it. That’s why it’s important to stay vigilant and take a proactive approach to managing our energy contracts. Being prepared is key to weathering any storm that comes our way.
Your Partner in Navigating Energy Trends
At Norwich Accountancy, we’re more than just number-crunchers; we’re your trusted guides through the maze of energy markets. Our dedication to providing you with top-notch insights and advice never wavers. Whether you’re navigating the ins and outs of the Energy Bills Discount Scheme or plotting your next contract move, we’ve got your back, helping you make smart decisions that move your business forward.
As we keep a close eye on the energy landscape, we urge you to stay engaged, informed, and proactive. The current trends present a golden opportunity for cutting costs and crafting strategic plans.
If you want to take control of your energy costs and make savvy decisions for your business, get in touch with Indigo Swan. Let’s work together to unlock savings and secure a brighter energy future for your company.
