Weather Impact on UK Energy Prices Business Energy Markets

A week can be a long time in British Weather – unpredictability of British weather affecting energy prices

A colder-than-normal winter inevitably puts extra pressure on both gas and electricity prices. Colder spells increase heating demand at home and across Europe

20+ Years Experience

A trusted industry leader working for a diverse range of commercial customers.

20+ Years Experience

A trusted industry leader working for a diverse range of commercial customers.

20+ Years Experience

A trusted industry leader working for a diverse range of commercial customers.

ENERGY CONSULTANCY OF THE YEAR 2025

A week can be a long time in British Weather – unpredictability of British weather affecting energy prices!

A colder-than-normal winter inevitably puts extra pressure on both gas and electricity prices. Colder spells increase heating demand at home and across Europe, as well as boosting gas-for-power generation, which quickly lifts wholesale prices. A mild winter, on the other hand, can give markets some breathing room and often pushes prices down. The unpredictable nature of weather remains the biggest swing factor in near-term energy costs. To date, UK Winter has been relatively mild, albeit with a really cold spell to start the year and typical uncertainty around what the coming weeks may look like.

How Can Advantage Help? 

Our sustainability department continue offer an ever-increasing range of products and technology aimed at reducing energy consumption and associated costs as well as driving down carbon emissions. We will, of course, continue to keep you updated on these initiatives, but please do reach out to your designated point of contact should you wish to explore your options in this regard.

In terms of procurement, we will of course continue to monitor markets with a view to helping customers navigate the unprecedented circumstances and ascertain when constitutes the best time to seek a contract extension. 

Our popular flexible procurement options continue to be an option for an increasing number of clients on either a standalone basis or as part of a grouped basket. This often facilitates access to day/month ahead trading markets, which have proved to be particularly beneficial to many clients over the winter period. 

BULLISH IN Q1

  • EFFECTS OF A COLD WINTER SPELL

  • POLITICAL & ECONOMIC INSTABILITY AND UNCERTAINTY

  • RUSSIA/UKRAINE WAR – ENERGY INFRASTRUCTURE ATTACKS

RANGEBOUND IN Q1

  • MIDDLE EAST ESCALATION FEARS

  • VOLITILITY & UNCERTAINTY

  • OIL PRICES

  • CARBON

  • VENEZUELA

BEARISH IN Q1

  • MILD WINTER START

  • INCREASED LNG CARGOES

  • WHOLESALE FUTURES PRICES

  • INCREASED NORWEGIAN GAS FLOWS

  • TRUMP’S TARIFFS

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