I do not have a crystal ball, neither does my team and the energy forecasts below are simply that, however, we have not seen such significant increases forecast in over ten years. It would be remiss of me not to share.
Electricity
Prices have been quite stable for July and August, however, as we come into the colder months these prices are forecast to rise significantly from today’s rate over 40%. As we come into December, slight drop into summer next year and then back up again into winter.
Interestingly, normally during the summer months we see prices drop due to less demand, however, the hot weather had a negative effect in some markets as power usage soared with everyone plugging in fans and cooling systems to keep cool.
| Electricity | £/MWH | Forecasted % Increase from Current Cost |
| Current | 42.5 | N/A |
| 41.28 | -2.87% | |
| Sep-19 | 42.9 | 0.94% |
| Oct-19 | 47.71 | 12.26% |
| Nov-19 | 57.07 | 34.28% |
| Dec-19 | 60.09 | 41.39% |
| Q1 – 2020 | 61.39 | 44.45% |
| Q2 – 2020 | 51.94 | 22.21% |
| Q3 – 2020 | 50.82 | 19.58% |
| Summer 2021 | 49.45 | 16.35% |
| Winter 2021 | 55.83 | 31.36% |
| Summer 2022 | 46.18 | 8.66% |
Gas
Costs for winter this year are forecast to rise over 90% in December compared to today’s prices. They do drop again next summer (nowhere near what they are currently) but less than winter and then back up again in Winter 2020.
| Gas | P/Therm | Forecasted % Increase from Current Cost |
| Current | 29.4 | N/A |
| Aug-19 | 29.57 | 0.58% |
| Sep-19 | 30.61 | 4.12% |
| Oct-19 | 38.22 | 30.00% |
| Nov-19 | 49.87 | 69.63% |
| Dec-19 | 56.52 | 92.24% |
| Q1 – 2020 | 57.51 | 95.61% |
| Q2 – 2020 | 47.44 | 61.36% |
| Q3 – 2020 | 46.64 | 58.64% |
| Summer 2021 | 46.52 | 58.23% |
| Winter 2021 | 54.45 | 85.20% |
Any contracts due in the next 18/24 months you should be looking at procuring now in advance to avoid these increases.
Please be aware that some of the major suppliers are now offering variable price offers (those which tie you in but can be increased during the term of the contract).
If you feel your business may be seriously affected by such events, feel free to call Dawn on 01142 295951 for a free, no obligation call.