Year of uncertainty…
2017 is set to be the year of uncertainty with various factors worldwide all looking to take their toll on the energy market. As with most markets, uncertainty usually means inflated prices.
Some key events taking place in the first quarter alone, all of which will cause extreme volatility;
- Brexit – It had to be said. When will article 50 be triggered? Will it be a hard or soft Brexit? Will the UK’s negotiating skills be up to the task. These are all factors which will impact the current uncertainty in the market
- Trump – No-one really knows what to expect once Donald Trump does become President of the US. One thing for sure, he can make markets jump with a single tweet!
- Legislation – April sees the long awaited P272 come into force, along with the capacity market reform. Both of which are likely to cause increases in consumer energy costs.
- Anything else – These are just the events we know about. Of course many other unpredictable factors impact volatility in the energy markets also.
Experts are predicting a 3-8% increase on a consumers energy costs in 2017.
What can you do?
Two words, Strategy and Opportunity…
Ensure your business has a procurement strategy in place and that it is managed by energy specialists.
Renewals don’t have to be secured in a suppliers renewal window. By working with industry experts, such as Prestige, you can ensure your renewals are secured at the most opportunistic time possible. Minimizing your risk of any potential increases as much as possible.
All in all, it is fair to say consumers will likely see an increase in their 2017 energy renewals. By working with Prestige, you can rest assured your contracts will be renewed at the most opportunistic time in the markets.