Commodity prices rose steady through all of Q2 with forward seasons showing an average increase of around 14%.
End point prices for electricity were as follows;
Oct 21 Annual – £46.38
Apr 22 Annual – £47.52
Oct 22 Annual – £47.96
Apr 23 Annual – £48.09
Gas prices remained low due to coronavirus restrictions and the expectation of warmer weather with spot prices hovering around the 25p/therm mark.
Overall, we believe that the present market conditions represent a fantastic opportunity to lock your future contracts in where possible, and potentially fix them in long term. Our belief is that prices will rise, especially as we move towards the end of Q3 when hopefully the worst of the COVID-19 pandemic will have passed.
Many suppliers are currently short purchasing which could provide additional strength to the market should demand return in strength during Q4 and 2021 Q1.