Prices have been moving up following the Brexit vote and concerns about gas flows into the country as well as the Rough storage facility.

Inenco’s Y Report suggests there is still a great deal of uncertainty and these risk concerns remain priced in.

Head of Energy Trading Stuart Lee said leaving the EU has resulted in sterling weakening dramatically against the dollar and euro, meaning it’s now far more expensive to import oil and gas into the UK.

Despite increased imports, the gas system is only balanced.

The base cost of coal is also increasing which is having a big effect on electricity prices, he added.

Mr Lee went on: “With most fixed price contracts renewing on the first of October and given the transfer timescales, there is only really about two months left to complete your negotiations.

“Given that prices are increasing and there is a lot of uncertainty in the market, there is nothing out there suggesting that prices will fall back and it’s probably the time to complete your negotiations. The price you’ll get will still be very good compared to prices we have seen over the last two years.”

Talking about flexible contracts, he added: “For the same reasons prices are increasing and there is a lot of risk around. Now is the time you really should consider increasing your hedges. If prices do fall in the future, you can always sell back to the market.”