top of page
Keyboard and Mouse

28/03/2022 - Weekly Wholesale Market Update

This morning, the Electric wholesale prices have opened up 6.43% higher than this time last week with Gas increasing by 3.40%.


Last week, as the Russian invasion of Ukraine entered its second month, energy prices continued to fall, despite the fact that fundamental gas flows from east to west remained virtually unaltered. Following Putin's demand that 'unfriendly' countries pay for gas in roubles to boost demand for the sinking currency, there was a blip in this trend early last week. Despite the first price shock, European leaders denied the proposal, citing Gazprom contract T&Cs that dictate payment terms in euros, which would be a breach of contract if changed unilaterally.


Energy prices continued to decline last week as the Russian invasion of Ukraine began its second month, despite the fact that fundamental gas flows from east to west remained practically unchanged. There was a pause in this pattern early last week, following Putin's demand that 'unfriendly' countries pay for gas in roubles to increase demand for the plunging currency. Despite the first price shock, European leaders rejected the suggestion, citing Gazprom contract T&Cs that stipulate payment conditions in euros, which if changed unilaterally would be a breach of contract.


Despite a persistent decreasing trend and a (relatively) stable market, many suppliers continue to withhold new business bids or only issue a limited range of contract terms. The difficulty has been exemplified by the shocking announcement that ScottishPower, one of the 'big six' legacy providers, will be exiting the I&C market in stages (no current customers will have their contracts withdrawn and no lay-offs announced). ScottishPower held 4% of the non-domestic 'large-scale' energy market on its books in 2019, according to Ofgem.


Gazprom UK, which supplies 20% of the non-domestic gas market, is coming under increasing pressure from customers wanting to get out of contracts, despite the fact that the company has not been sanctioned directly. Should the provider fail, the UK government has stated that it will intervene to place the company in'special administration,' similar to Bulb. This will come at a high cost to the public, which will be exacerbated by the Treasury's own anti-hedging policy. In the face of rising wholesale costs, Bulb could cost taxpayers more than £3 billion.



How the market has opened each day:


Date Electric (£/MWh) Gas (p/therm)

21/03/2022 194.50 235.00

22/03/2022 197.00 219.00

23/03/2022 204.92 248.43

24/03/2022 230.00 265.00

25/03/2022 220.00 260.00

28/03/2022 207.00 243.00


7 day averages


Electric (£ per MWh) 208.90

Gas (pence per therm) 245.07


The below shows how the market compares to the previous week, month and year.





When will you look at your next renewals? Get your free quote today.


Get in touch to see what is available for your next renewals. 0151 459 3388



14 views0 comments

Commentaires


Keep Up To Date With Market Updates

technological-devices-with-financial-reports.jpg

Securing your next energy contract at the optimum moment is essential for fully realising your savings opportunities. Provide your details below to gain access to weekly market updates, giving you the advantage to make informed purchasing decisions at the right time.

 

Bid farewell to aggressive sales approaches from other brokers and take charge with confidence!

You're Subscribed! Look out for your first report soon!

Have More Questions?

  • Is it possible to change multiple business utilities at the same time?
    Our switching service allows you to switch multiple utilities simultaneously. We have successfully assisted multiple businesses in the UK by helping them save on various services such as energy and water with savings within 2023 already over the £2 Million mark.
  • How much can I save on my business utility bills?
    The amount you can save on your business utility bills will depend on various factors such as your current usage, the rates offered by different providers, and the specific deals available in your location. However, our switching service is designed to help you find the best deals and save as much as possible. By comparing multiple suppliers and negotiating competitive rates, we aim to maximise your potential savings. Get in touch with us to discuss your specific needs and get personalised information on potential cost savings for your business utility bills.
  • How does switching business utilities work?
    Switching business utilities involves a straightforward process. Here's a general overview of how it works: Evaluation: Start by assessing your current utility bills and usage patterns. This will give you an idea of your current costs and help identify areas where savings can be made. Comparison: Use a switching service like ours to compare different utility providers in your area. We provide you with quotes from multiple suppliers, allowing you to compare prices, contract terms, and services offered. Selection: Based on the comparison results, choose the utility provider that best meets your needs and budget. Consider factors such as price, customer reviews, contract terms, and any additional services or benefits offered. Contract Negotiation: Once you've chosen a new provider, our team can help negotiate the contract terms and rates on your behalf. Switching Process: The switching service will coordinate the transition with your current supplier and the new provider. This may involve submitting termination notices, arranging meter readings, and scheduling the activation of new services. Enjoy the Savings: After the switch, you'll start receiving services from your new provider, typically at the agreed-upon rates. You will notice savings on your utility bills, providing you with cost advantages for your business. Remember, the exact process may vary depending on the type of utility you are switching, but our switching service aims to simplify the process and assist you at every step.
  • Who are the cheapest business utility providers?
    As market conditions and prices fluctuate regularly, it's challenging to provide an up-to-date and definitive list of the cheapest business utility providers. The prices we provide you are valid and available on the day of the quote and will provide most current and competitive deals available. Our switching service helps you compare prices and offers from multiple suppliers, ensuring you have the most accurate and relevant information to make an informed decision about your business utility provider.
  • What is energy procurement?
    Energy procurement is the process of sourcing, negotiating, and securing energy contracts to meet the specific needs of a business. It involves analysing energy consumption patterns, understanding market trends, and negotiating with suppliers to obtain the best possible rates and contract terms.
  • Why is energy procurement important for my business?
    Energy procurement ensures that your business secures energy contracts that are both cost-effective and aligned with your operational needs. Proper energy procurement can lead to significant cost savings, budget predictability, and reduced risks associated with volatile energy markets.
  • How does The Smart Energy Company help with energy procurement?
    We specialise in analysing your energy consumption, understanding your specific needs, and leveraging our relationships with over 20 suppliers to negotiate the best possible contracts on your behalf. Our team ensures you get optimal rates, flexible terms, and contracts that align with your business goals.
  • How do you ensure I get the best energy rates?
    Our team continuously monitors the energy market, staying updated with trends, price fluctuations, and supplier offerings. Coupled with our in-depth analysis of your energy needs and consumption patterns, we negotiate with suppliers to secure rates that are both competitive and suited to your business.
  • Are there any hidden fees associated with your energy procurement services?
    Transparency is a core value at The Smart Energy Company. We provide a clear breakdown of any commission we earn as a company when you come to agree any new energy contract. This is typically included as an uplift in your unit rate and paid to us by the supplier you chose to go to. Our primary goal is to secure the best energy deals for you, with no hidden costs.
Business Meeting

Unlock the Potential of
Your Business Energy

At The Smart Energy Company, we're committed to offering tailored solutions that fit your energy needs perfectly. By staying ahead of market trends, we ensure you're always equipped with the most efficient and sustainable energy options. We take pride in our client-driven approach, where your feedback shapes our continuous improvement.

 

Why not schedule a complimentary consultation with one of our energy experts today? Let's find the perfect energy solution tailored to your business.

See What Our Clients Say About Us

1828884.png
1828884.png
1828884.png
1828884.png
1828884.png
56937_edited.png

Very helpful, quick expert advice. We have been using Smart Energy for a while.

56937_edited_edited.png

Ian Hughes

Operation Manager

Group of Bars

bottom of page