So what do our experts recommend?
In a bullish market, where prices keep going up and up, it is risky to wait and see what happens, as it’s likely that energy will ultimately cost more.
With higher energy costs on the horizon, our advice is to take out, or extend, contracts now to protect against any further volatility.
Otherwise they could see a significant rise in their energy costs – over and above what we have already seen.
- Take action now – renewing under a capped strategy can mitigate the risks, but ensures flexibility too, in case the market changes.
- Watch your budget – make sure you consider potential price rises when putting your budgets together.
- Buy ahead and buy long term – Over recent years, those purchasing their wholesale energy on a 3 year contract or longer, have certainly gained an advantage when securing the best possible price.
- Don’t delay – Don’t leave it to the last minute to arrange October renewals! Otherwise, suppliers are likely to be fully stretched and bids can be rushed out with high margins, leaving buyers struggling for good deals in a seller’s market.