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Bracing for the Surge: Day-Ahead Energy Prices Reach 6-Month Peak

Navigating Today's Energy Prices: What Businesses Need to Know

The energy market can be tricky, especially with so many global events influencing prices. Right now, we're seeing some of the highest day-ahead market prices in the last six months. A lot of this has to do with what's happening globally, especially the recent issues in Israel. Let's break it down for UK businesses, especially those looking at contract renewals in the upcoming months.


image of oil rig and graph going to to show prices are highest they have been in over 6 months

1. The Impact of the Israeli Conflict

The recent conflict in Israel has really shaken up the energy market. Oil prices have gone up quite a bit. In fact, gas prices jumped from 67.50 p/th on 05/10/2023 to 130.90 p/th just a week later.

image of a graph showing price changes over the past six months, with clear markers for highs and lows

2. How This Affects Everything Else

Higher oil prices mean everything else gets pricier too, including the cost to make electricity. This can change what businesses pay for their energy. Even with rules from Ofgem to help businesses, it's tough to avoid all the price jumps.


3. The Bigger Picture: Prices Over the Last Six Months

There's been a lot of change in the energy market recently:

  • Events in Ukraine have made people look for greener energy options.

  • As we move into colder months, we use more energy. But with problems like the Israeli conflict, prices go up even more.

  • Even though prices are high at the moment, they're still significantly lower than they were at this time last year and in early 2023. This means there's still an opportunity to save! However, if you entered into any contracts from May onwards, it's probable that your next renewal might come at a higher cost, given the current market conditions.

4. Think Ahead: Renewing Your Contract

If your business has a contract ending in the next six months (through Autumn, Winter, and maybe Spring), this is important for you. Prices might go up more, so now might be a good time to renew. Especially when you think about how much higher prices were last year.


Wrapping Up

Energy prices change a lot, and global events play a big part in that. For businesses thinking about their energy contracts, it's a good idea to keep an eye on what's happening and plan ahead. At The Smart Energy Company, we're here to help you make sense of it all and get the best deal. Let's work together to make sure you're prepared.



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

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Ian Hughes

Operation Manager

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