Market trends: Is there a best month to secure energy contracts?
Identifying trends to secure the best possible energy contract is something we do at Zenergi on a daily basis. Our Market Watch team track trends in the market and provide insights to our procurement team to help ensure our customers are benefitting from optimal rates every time they renew.
But we are often asked, is there a specific month which is typically the best time to renew?
In short… not really, but with expert insight it is possible to lock in the best rates regardless of the time of year.
Unfortunately, major events, such as the COVID-19 pandemic, extreme weather scenarios, like ‘The Beast from the East’ and political events, such as Brexit, have such a significant impact on energy markets that it is impossible to pinpoint the cheapest month to buy energy with any certainty. However, our analysts have compiled a report which analyses the energy market over the last six years, highlighting some interesting observations.
Read more about the factors and fundamentals which dictate the energy market here.
The overall findings of the report are detailed below.
Cheapest month for gas, on average, over the last six years: March
Most expensive month for gas, on average, over the last six years: September
Cheapest month for power, on average, over the last six years: March
Most expensive month for power, on average, over the last six years: October
- The data uses an average aggregate price range of 36 months, so it is applicable to one, two and three-year contracts.
- The overall difference between prices, month-on-month is minimal, showing that value can be achieved throughout the year.
- However, the report also shows that fluctuations can be extreme, with a 10% difference between the cheapest and most expensive months.
- The most expensive month for gas is September and the most expensive month for power is October, based on this data range. Although this is heavily skewed by a significant spike in prices in Autumn 2018 when oil prices rose to their highest levels since 2014 impacting overall commodity markets.
- Please note that previous market trends are not a clear indication of future movement. This has been proven by March being the most expensive month of 2021 so far.
Get in touch with one of our consultants today to secure the best gas and electricity rates for your organisation, as well as benefitting from a range of other services to help manage your energy usage.