Wholesale gas and electricity prices dropped dramatically in 2014 and in 2015 this trend has continued.
Wholesale gas prices are down 37% since the start of 2014 and wholesale electricity prices are down 20% as can be seen below:
Prices and Changes Since 1st Jan 2014
|Change since 1st Jan 2014(%)|
|1st Jan 2014||1st Jan 2015||1st Jul 2015||8th Oct 2015|
|Electricity (pence per kWh)||5.19p||13% down||16% down||20% down|
|Gas(pence per therm)||66.5p||27% down||30% down||37% down|
These drops should be filtering through to your company as big drops in the price that you are paying for your energy per unit. You should be benefitting from drops of around 10% in electricity and 20-25% in gas since early 2014.
The Future Outlook
You can see where the market believes prices will go into the future by looking at the forward prices such those for buying gas or electricity in 2017 or 2018. Looking at these numbers the market is pretty flat with gas costing roughly 42.5p / therm and electricity around 4.2p per kWh over the next 3 years. The market is thus predicting a period of sustained low prices. The key thing though is that unless you put some pressure on your supplier by shopping around they may pocket all the benefit of these low prices and you may get no benefit at all.
All statistics from energyhelpline using market data reports
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