2024 Commercial Energy Price Forecast | Smarter Business UK

by | Jan 19, 2024

2024 Commercial Energy Price Predictions 

For business owners, the question on everyone’s minds is, “Will energy prices fall in 2024?” At first glance, we appear to have started strong in 2024 – with a 12% reduction in the short-term energy price forecast according to Cornwall Insight. 

However, the outlook is that energy prices will remain high in 2024, with some reports saying that they are expected to remain at pre-2021 levels until about 2029.  

 

Why are energy prices falling? 

The energy price reacts directly to the live market – and so reflect market stability and volatility in equal measure. The drop in wholesale prices in the final quarter of 2023 is encouraging. This is primarily related to certain factors. These include the secure European gas reserves, which has reduced worries around winter shortages. 

The shift to renewable energy sources also has a bearing on the decreased price forecast. However, gas market volatility around Europe’s liquefied natural gas supplies remains a key consideration for future predictions over the next decade.  

Supply and demand considerations are also a constant consideration when it comes to commercial energy prices, with suppliers adapting around risk and supply, market volatility, and the wholesale market. The unpredictability of the market plays into the high price of energy.  

 

Why can you expect energy prices to remain high in 2024? 

Recent market volatility makes 2024 pricing unpredictable. In the context of recent decreases, it is important to remember that inflationary changes could result in an upturn in the markets. However, local and global market factors will also have a bearing on pricing over the year ahead. This includes gas supply levels, demand, infrastructure and supply chain issues, the uptake of renewables, and the ongoing impact of failed energy suppliers.  

As a business owner, it is important to be aware of market fluctuations that influence your energy spend. This provides opportunities to control costs as much as possible and develop robust energy management strategies. 

 

Commercial energy management strategies to save in 2024 

Find out about fixed energy rates

One of the most resilience approaches to energy market volatility is through fixed energy rates. Find out whether this is the best option for you by discussing your contract with one of our energy experts.  

 

Understand and audit energy consumption 

The best way to save on your business energy bills is to cut consumption. The best way to optimise energy efficiency is to understand your energy consumption. This helps to identify easy gains for consumption cuts with minimal disruption to your operations.  

Metering and monitoring are important tools in understanding consumption, ensuring billing accuracy, and developing energy management strategies.  

 

Start making sustainable changes 

In the context of energy market volatility and the climate emergency, net-zero carbon is a priority point for all businesses. From green suppliers to retrofit solutions, we’re here to guide you through the changes.  

 

Simplify Your Business Energy With Smarter Business In 2024 

Working with commercial energy procurement specialists holds many benefits for businesses. At Smarter Business, we take the legwork out of sourcing and comparing quotes and contracts from leading energy suppliers. We also apply our expertise and experience to provide tailored advice for the best match for your needs. Contact Smarter Business today for a quote and more information.  

2024 Business Energy, Gas, Water, Facilities Maintenance

Business Energy Tips for a Strong Start In 2024    Insights To Ensure Business Utilities Are New Year Ready  As we take our first steps into the new year, it is the perfect time to get everything in line to start 2024 on the right foot. Take the time to relook at...

2023 Winter Business Energy Savings

Quick Tips for Winter Energy Worries  How To Prevent Winter Energy Woes    As winter approaches, the cost of winter energy – at home and at work – is on everyone’s minds. It’s a good time to scrutinise energy consumption with savings in mind.  The domestic energy...

How the Israel-Hamas Conflict Affects Gas & Energy Prices

Will the Hamas-Israel Conflict Affect Energy Prices?  How the Hamas-Israel Conflict Impacts the Energy Market  The Hamas-Israel conflict has caused concern around the effect on the energy market. What is the connection between the Middle East and your energy bill?...

How Strikes Are Affecting Global Gas Prices

Australia’s Chevron Strikes and Gas Price Fluctuations  Strikes in Chevron’s Australian facilities have resulted in global gas price instability. European natural gas prices surged by 13% following walkouts in Australian plants. The negotiations between parties are...

When should SMEs be switching energy providers?

I have written down my thoughts on the current state of the energy market to help clients in their decision making. The reality is that the world’s leading analysts do not have these answers; however, I hope that the comments below provide some guidance to help...