Energy Markets At Multi-Year Low
The best time to contract is often when no one else wants to. Energy stocks fall into that unloved category right now – oil prices are getting hit by a supply/demand imbalance, the push for ESG investing, and concerns about a global slowdown tied to the coronavirus. Fluctuations in oil barrel prices impact directly on the costs for gas, electricity, heating oil, LPG and so on.
Understandably most businesses are probably not prioritising their next energy contract right now. For most organisations though we know that given the effects on everybody’s operating abilities during this period of uncertainty, it’s more important than ever to find cost savings across the organisation, so we wanted to make sure that you’re aware of the current market situation.
Due to market lows, switching contracts now could help reduce your outgoings and return significant savings.
Given the ongoing and open-ended situation in the market, the knock-on effect has been that suppliers are getting more desperate to secure some known future business and this is not just driving prices downwards but enabling the customer to secure these rates much further ahead.
The market is currently lower than it has been for more than a decade but just as beneficial for consumers is that the principal suppliers are now offering to fix today’s rates for contracts up to 18 months ahead. This means that for any of your properties we can tie in today’s price to run for any contracts not starting out until the end of 2021 when the likelihood is that (hopefully) the pandemic will be over and the market rates will have gone up significantly.
To see if there are opportunities to commit suppliers to today’s rates for any of your Utilities requirements due any time within the next 18 months, contact me on:
Tel; 0800 566 8726, Mobile 07827 014303
Email; peter.roberts@provantageprocurement.co.uk