Simply put … there is n’t a steadfast rule to this and it is n’t always in the summertime which is a vulgar misconception .
In the contract team , we help NFU members pander thousands of contracts every year . Our customer ’s supplies range from small farm buildings to declamatory pump house , veggie stores and fowl sheds . The importance of a upright , fair price remains the same and pick the best time of twelvemonth can be tricky .
What can cause energy price to rise?To first realise when to expect low prices , we require to think about what induce prices to prove . The energy market place can be a somewhat volatile place , however , some of the main drivers for price are :
Supply shortagesWhether it ’s nuclear , renewable , natural gas or oil color famine can create uncertainty .
light term demandIn the short term if there is a pregnant increment in the need for heating , cool down or lighting .
recollective term demandOverall demand is ever increase in the UK and the requisite to support novel engineering such as an increment in electric vehicles will definitely necessitate more energy .
Third party costsAround 50 - 60 % of the unit rates you pay up on your electricity bills are made up of third party price . These are made up of various charges place by distribution and the government to cover the cost of catch the get-up-and-go to you , supporting genesis and regulative charges . These costs are revised every April and ordinarily go up .
atmospheric condition conditionsThough high winds can increase malarky turbine multiplication and rain and snow can help with hydropower generation , utmost temperatures can move the demand for electrical energy and gas for both cooling and heating system .
Coal , Carbon and Oil pricesA rise in toll for these can increase the cost to generate electrical energy and demand for alternatives .
Financial marketIn period of financial imbalance such as ceding back and even Brexit negotiations a free fall in the value of the pound sign can create excitability .
Political unrestPolitical changes that may touch on energy origin worldwide can produce doubt and volatility .
existence eventsWars , fermentation and natural disasters can work mayhem on the free energy securities industry – particularly if they ’re happening in areas close to fuel sources or generators .
Demand is lower in the summer so surely that ’s the best time?Typically it would seem right to assume that with so many irregular factors , would n’t it make sentience to aim for the summer when requirement is at its lowest ? Unfortunately , if we look at preceding days , it ’s still not that simple . During heat wave demand for both domestic and commercial-grade cooling increase , which can bring price up rather than down .
To stop out what can be done to judge and get the skillful fair price , read the rest ofthe article at NFU Energy .
