Power prices still falling – Y report

Power prices are continuing to fall, according to Inenco’s Y report. Dorian Lucas, Energy Analyst said: “Those customers looking to place fixed price contracts, those who can wait a little […]

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By Jacqueline Echevarria

Power prices are continuing to fall, according to Inenco’s Y report.

Dorian Lucas, Energy Analyst said: “Those customers looking to place fixed price contracts, those who can wait a little bit might benefit from doing so, however if you’re looking at the market now and seeing a year-in-year benefit might be beneficial for you to enter the market and place your business now.”

They should do that over a two to three-year period because the premium bill “into forward seasons is minimal compared to historic levels”, said Mr Lucas.

 

“Going forward you can generate a better deal over a longer contract period”, he added.

For customers on flexible contracts Mr Lucas said: “If you’ve got relatively high exposure you might want to take a little bit going forward. The market’s at the bottom of the level at the moment and represents great value.”

However, he suggests they should increase their risk management and take a bit of precaution as there’s a lot of risk and prices can turn quickly during the winter.

He added: “However if you’ve got quite high coverage again sit on your hands and see how far this market can go.”