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When will energy prices go back to normal for Australian businesses?
Many of clients are asking this question daily, as they contemplate when to lock in their next electricity or gas contract, and for how long.
Earlier this month, the Australian Energy Regular confirmed ‘future markets indicated gas and electricity prices will remain high through both 2023 and 2024’(1).
In the AER’s quarterly wholesale markets report, they stated ‘the key drivers for continued high price expectations are varied but include expected high international gas and coal prices, uncertainty around reliability of base load coal generation, local coal supply issues, forecast La Nina weather conditions and the closure of AGL Energy’s Liddell coal plant in April 2023, tightening supply’.
Whilst it’s reported government are still considering a range of options to lower elevated prices, such as price caps and reducing gas exports – they face a push-back by energy producers worried about sovereign risk (i.e government intervention impacting their future earnings) (1,2).
“With prices remaining high we are constantly studying the energy market, and looking for any market dips and seeking out lower contract prices to secure competitive offers for our clients. It’s critical that we act fast for our clients as prices change daily. It’s never been more important for our clients to be tender ready – with key decision makers in their business ready to sign and return an offer – same day. This year has certainly been a challenging time for business owners and procurement managers and, it’s looking to be just as difficult next year.” Nick Johnson, Head of Account Management
With energy prices going from record lows to record highs, the increase in solar uptake has been exponential.
Looking to reduce your energy costs?
If your business is examining your energy bills and looking at ways to reduce your costs, it’s time to partner with experts. At Sustainable Energy Solutions we help thousands of Australian businesses reduce their energy costs.
Our team of energy brokers can assess your business’s energy needs, compare business energy plans and negotiate you a better offer – call us on (02) 9371 4153 or fill out our contact form.
Sources: (1) The Australian, Business Section, pg13/16 - 17/11/22, (2) ABC.com.au
