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.  

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