Securing Your Energy Future: Why You Should Act Now

For any business, energy procurement is one of the most significant costs you will face, with energy prices often making up a significant portion of your overall expenditure. The current energy market can be unpredictable and volatile, with prices constantly fluctuating based on a range of factors, from weather patterns to global supply and demand. This can make energy procurement a daunting task for many businesses, but it’s essential to get it right to ensure that you can maintain operational efficiency and profitability.

At Northern Gas and Power, we understand the complexities of the energy market and the challenges that businesses face when trying to secure their energy supply at competitive prices. With over £2.5bn of annual energy cost exposure under our management, we are experts in energy procurement and market intelligence, and with our Flexible Energy Procurement services, we have helped countless businesses across the UK to take advantage of market fluctuations, secure competitive prices, and achieve long-term price stability.

The Market is at its Lowest Point

One key reason why businesses should act now to secure their energy future is that the market is currently at its lowest point since the Russian invasion of Ukraine. This presents an opportunity for businesses to lock in their energy prices at a more affordable rate, providing them with long-term price stability and protection against future market fluctuations.

As a business, it’s important to consider the potential risks of waiting for a better price in a volatile market. Rather than trying to time the market, signing a contract and securing your commodity now can offer more stability and protection against potential price increases in the future.

Supply and Demand Dynamics are Changing

Another reason why businesses should act now is that the supply and demand dynamics of the energy market are changing. Demand is picking up in Asia, with Asian LNG prices now at a premium to the UK and European markets. This means that there will be a supply gap in the UK market soon. The market is also becoming more volatile, as demonstrated by the recent market rise of over 20% based on continued French strikes impacting gas and nuclear, as well as EDF instructing inspections of welds at nuclear plants, which could impact nuclear production in 2023.

Don’t Wait for the Market to Rise Again

With the market being so unpredictable, it’s crucial not to wait for the market to rise again before securing your energy supply. Waiting it out and trying to catch a low point may seem like a smart move, but it’s also a risky one. By waiting, businesses run the risk of paying a price that has baked in excessive risk premium due to potential supply shortages. The price right now has extracted all premiums due to shortage, and the market is more or less at an equilibrium price given the amount of LNG we are importing. In this market, everyone can get caught off-guard, so it’s important to act now and play it safe.

Take Control of Your Energy Future

By partnering with Northern Gas and Power, businesses can access a range of services aimed at securing their energy future, including flexible energy procurement, energy bill analysis, energy efficiency solutions, Net Zero consultation, and more. Our experienced team has a deep understanding of the energy market, as well as sector-specific knowledge that enables us to provide tailored advice and support.

We work with businesses of all sizes to help them achieve long-term price stability and protect against future market fluctuations. Whether you’re looking to reduce your energy costs, improve your energy efficiency, or meet your sustainability goals, we have the expertise and resources to help you succeed.

Our flexible energy procurement service is designed to help businesses benefit from the wholesale market’s fluctuations by purchasing smaller amounts of energy throughout their contracts. We also provide market intelligence and expertise that are instrumental in achieving an accuracy rate of over 93% in price forecasts.

Our energy efficiency solutions are tailored to your business needs and can help you reduce your energy consumption, lower your costs, and improve your environmental footprint. Our Net Zero consultation services can assist your business in transitioning to a sustainable future, providing you with the knowledge and tools needed to achieve your sustainability goals.

By working with us, businesses can have peace of mind knowing that they have a trusted partner who can provide them with the support and expertise needed to navigate the complex energy market. Our goal is to help businesses achieve long-term price stability and security, ensuring they can focus on what they do best – running their business. Get in touch with us today to find out how we can help you.

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