Update on Current Market Volatility
Update supplied from Brook Green
HOW WILL THE CURRENT UKRAINE CRISIS IMPACT MY ENERGY?
• As a consequence of the Russia-Ukraine conflict, power and gas supply contract prices in the UK are now at the highest levels they have ever been. Markets are experiencing unprecedented uncertainty and volatility, and it is unclear when this will change.
• We are seeing that customers renewing their energy supply contracts for April 2022 are contracting rates at up to 900%-1000% higher levels on gas and 600%-800% higher on electricity, compared to what they would have contracted this time last year.
• Whilst not all customers will see the knock-on effects of this immediately on their energy spend, the impact will become apparent at the point of contract negotiation.
• Should further sanctions be placed on Russian energy supply companies, the situation may worsen. Whilst not yet announced, in the future we may also see the government mandating certain sectors to use less energy in order to reduce national demand.
WHAT CAN I DO TO MITIGATE THE IMPACT?
• The best course of action that consumers can take is to reduce energy consumption wherever possible. The returns on energy efficiency measures have never been as high as in the current climate.
• Changing energy consumption trends does not happen overnight, so we recommend implementing the required operational and behavioural changes as quickly as possible.
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