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Why are energy prices currently so low?

We appreciate this is a time when we’re all looking to save costs. Due to the current ‘situation’, now is a really good time to fix your energy bills.

Why are energy prices at one of their lowest points for the last 5 years? We have provided a full market summary below which you might find interesting.

In the meantime, send a copy of your bill to us today at hello@conceptdatasolutions.co.uk, and we’ll compare the market to get you the best deal. Even if your contract doesn’t end until next year, you can lock in today’s prices until then.

Overview:

The Coronavirus pandemic has caused oil prices to plummet in price (by over 57% so far this year to their lowest levels in 18 years according to an article yesterday from the BBC) and the FTSE 100 to fall to an 8-year low with many countries closing their borders and putting all residents on lockdown.

Already every business has had a productivity hit and now the government has enforced a lockdown in the UK, businesses are now under even more financial strain. To keep the cash flowing into your business, ensuring that you are helping to save as much as possible is the first thing you should be looking to do.

With the demand for energy dropping, prices are at one of their lowest points in 5 years, so now is the perfect time to lock in a lower rate for your business energy and reduce your overheads whilst offsetting turnover.

We can help with switching your energy today. As it can all be processed online it will not be impacted if the country goes on lockdown. Don’t wait to help make those crucial savings for your business and contact us today for a completely free energy audit!

Bearish Factors (downwards pressure):

  • Oil prices sliding by 57% this year at time of writing, to their lowest levels in 18 years.
  • 100 million people across Europe put on lockdown, reducing global stocks and the demand.
  • Despite demand continuing to drop, Saudi Arabia and Russia have promised to flood the market with oil as they are in an all-out price war for market share.

Market Report

Gas and Power

Contract prices have decreased this week, weakened by the bearish trading within the markets.

Power demand is low and set to drop further as more businesses work remotely, which will help keep contract prices cheaper.

Gas demand is below seasonal norms and is set to drop further over the next couple of days as the temperatures continue to lift.

As the overall supply and demand outlook remains bearish as the spread of the coronavirus intensifies, contracts continue to trade lower.

Don’t forget to send in your bills to hello@conceptdatasolutions.co.uk, to lock in today’s low energy prices and save your business money, or call us on 0333 009 0836.

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