Finally, energy prices fall back to normal levels
After a couple of months of sky high prices in wholesale markets, which ultimately claimed GB Energy, we’ve finally seen normality return to wholesale power markets since prices rocketed northward in early September. The on-going uncertainty over French Nuclear seems to have dissipated, after the French issued a statement saying that EDF would be able to restart some reactors. Gas markets also moved lower.
This is great news for a couple of reasons.
First, we expect this will translate into much better value 1 year supply contracts, with the rates for 1,2,3 year supplies now falling back into line with each other. And that’s great news small business energy customers looking to switch or re-contract in the coming weeks.
Second, and critically, it means smaller energy suppliers will escape the same risks that brought down GB Energy last week. GB Energy failed after it reported it couldn’t manage the high wholesale costs; where it was forced to buy wholesale energy for a higher price than it was able to sell it to its customers. This is great news for business energy buyers because these small and emerging suppliers bring healthy choice and much needed competition to the market, forcing all suppliers to lift their game.
*disclaimer: this short piece is intended to give an insight into current power markets, rather than be tailored advice to everyone. If you’re not sure or want advice about comparing and switching business energy relevant to your situation, please get in touch with us at firstname.lastname@example.org