Why Business Leaders Should Keep a Weather‑Alert on Energy Prices
Energy markets are feeling the chill of unpredictability again. Companies that want to keep their wallets from doing a split when prices spike should pay close attention and start moving toward greener options. This is the takeaway from the latest quarterly report by Advantage Utilities, a firm that marries commercial energy advice with sustainability.
The Price Roller‑Coaster of 2023
- December to March: Prices slowly eased.
- Early June onwards: A jagged, “saw‑tooth” pattern emerged.
- Despite a solid gas supply, bad news keeps nudging prices up.
Andrew Grover, the CEO, knows the market feels like standing on a hotplate – mildly calm‑tender at first, then suddenly blistering. He warns:
“Businesses must stay on top of an energy market that’s as precarious as a house of cards in a wind tunnel.”
What’s Causing the Sudden Price Surge?
- Unplanned outages: The Sep. fault at Chevron Australia cut 25% of output, straining supply.
- Scheduled maintenance: Countries, especially the UK, are slowing gas flows during calm weather weeks.
- Gun‑fire: The ongoing Russia‑Ukraine saga adds a layer of uncertainty.
- Other twists: Industrial strikes, rising Asian demand, and random geopolitical fireworks.
Is the Chill Going to Stay?
Our UK and EU gas depots still hold healthy reserves and the forecast predicts mild autumn weather, but the wholesale market remains exposed to a chain of interconnected shocks. If a major event hits, prices could loop back up.
Yet, landlords of the continent are not letting the crisis get the best of them – many are storing surplus gas in western Ukraine, giving the whole region a safety net.
How Businesses Can Build a Cushion
Grover suggests a simple counter‑measure: cut down on reliance on uncertain grid‑energy. Instead, embrace greener, cheaper generation methods. By doing so, you’ll:
- Reduce your exposure to market spikes.
- Stabilise your annual budget.
- Align your operations with green‑energy trends.
And if the market ticks up again, you’ll have a backup plan that keeps your costs steady.
Stay Informed. Stay Ready.
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