It is a good time for businesses on both fixed and flexible contracts to buy energy, according to Inenco’s Y report.
That’s because gas and electricity prices have fallen over the past week and might still decrease in the next few days.
Stuart Lea, Head of Energy Trading said: “The week before prices hit contract lows and I wondered if prices could fall even lower. I doubted it but during the last week prices continued to fall. If we look out into the future we see that oil economic outlook, the supply of gas and electricity mean that prices could continue to fall further.”
Mr Lea believes one of the factors that led a fall in UK energy prices was lower LNG prices in Japan as well as a decrease in oil prices.
He added: “Oil prices has material impact on gas and electricity prices in the UK. The oil price last week has been falling on the back of increased oil output, especially in Iraq but also world economic outlook, which suggests demand for oil might fall.”
In the UK, the announcement that the Rough storage facility will be able to pump more gas into the country this winter “has reduced pressure on the price and risk”, Mr Lea said.
Despite the fall in prices, he warned “something unexpected” could happen at any time.
He added: “If you’ve held so far and you’ve gained so much, is the risk worth holding? Probably not and therefore a good time to buy.”