16 Mar Energy Market Update: What Current Volatility Means for Your Contract Renewal
Energy Market Update:
Over the past few weeks, we’ve seen energy prices rise as global tensions continue to impact supply chains, alongside ongoing restrictions and uncertainty in gas markets. These factors have created short-term volatility across the wholesale energy market, particularly affecting contracts with immediate or near-term start dates.
However, through quoting and reviewing current market offers for clients, we’ve noticed that contracts with start dates in the summer months of 2026 are actually pricing relatively well, despite the wider uncertainty across global energy markets.
At present, the greatest pressure is being seen on ASAP and near-term contract start dates, where suppliers are building additional risk into pricing due to rapid market movements and ongoing geopolitical tensions.
Encouragingly, when we look further ahead at contracts beginning later this summer, towards the end of 2026, or even into early 2027, the market still appears to be in a relatively stable and competitive position. In many cases, forward contracts for these periods remain reasonably priced despite the uncertainty currently affecting the market.
One important consideration is timing. While some businesses may prefer to wait in the hope of a potential market fall, the risk is that if tensions continue, a delayed decision could result in your renewal contract starting during a period of heightened volatility, which may lead to higher prices.
For businesses with contracts due for renewal in the coming months, reviewing your options early could help you take advantage of current forward pricing before market conditions shift again.
If you have a contract that is due for renewal soon and would like to review your options, please contact our team with any questions or concerns regarding your energy contracts, and we’ll be happy to help you explore the best strategy for your business.
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