One of the things that I get asked most regularly is if the energy prices are likely to come down at all. If I had a crystal ball to be able to predict what the energy market was going to do, I would be a very wealthy person!
Energy prices have increased by around 10-15% annually over the last three years and though there are times when I think they couldn’t go any higher, they always surprise me and do exactly that.
Customers often ask me what we expect prices to do going forward and how long a contract to take. Though we can’t predict what is going to happen, simply looking at the past three years and assuming it will continue on the same trend can help us. If unit prices continued to increase, a short term deal each year could leave you with an increase every year but going for a longer fully fixed contract that is slightly more expensive, could still save you a considerable amount as you will avoid further increases.
Yes, there is always a chance that prices could come down. However, the fact that third party costs, that make up two-thirds of your contract unit rates, are likely to increase. Also, the current political climate creating volatility and a weakened pound means that a significant drop doesn’t look likely anytime soon.
We always recommend avoiding leaving your contract to the last minute and looking at prices three to four months ahead to give you time to consider your options.
Give our contracts team a call on 024 7669 8885 if you would like to discuss your electricity contract renewal.