Here we are, one full month into the New Year! As we all begin to get back into the swing of things, there is one dark shadow looming from 2022… continued energy price increases.
As we saw throughout 2022, inflation, the aftermath of the COVID-19 lockdowns, the Ukrainian War, and extreme weather events had a direct impact on business energy costs.
While we saw some attempt at Government intervention, and some cooling of the market as a result, commentators have suggested this week businesses will not see a significant reduction in energy prices until 2024 (“Electricity prices will come down – just not yet”, The Australian, 20 January 2022).
Amidst all of the uncertainty - we have always held the same position: Using energy is essential, we get it. Paying unusually high prices is not.
Forward-contracting your next large market contract
If you are a large market business coming out of contract within the next 6-18 months, now is a great time to explore forward contracting with the recent dip in the market. Large market businesses are the most impacted by increases in the National Electricity Market. Through forward contracting, you can secure lower rates now in the dip before further price hikes. See the below graph outlining the current market price trends.
Source: ASX Energy as of 25.01.23