Eastern Australia recently witnessed a rise in wholesale energy prices. This trend bucks the norm, as energy prices have been on a steady decline since the energy crisis experienced in 2022. Despite the warm weather, which typically leads to lower energy consumption and thus lower prices, the increase in pricing has been a notable aspect of recent market fluctuations.
However, a striking deviation from this pattern emerged over the course of a few months this year. Considering the continued decreasing energy demand, the market witnessed an unanticipated surge in energy prices. This upward trend perplexed many industry observers, raising questions about the underlying factors driving these price increases. The nuances of this unexpected market shift continue to be a subject of scrutiny and analysis.
In an intriguing development, this winter saw energy prices across New South Wales escalate to $148 MWh, substantially higher than the $100 MWh recorded back in January. While this does signify a notable rise, it's worth drawing attention to the comparative perspective. These current rates are significantly more economical than the staggering $320 MWh seen during the previous winter. This comparative respite, despite the evident increase, provides a lens into the dynamic and fluctuating nature of energy markets.
During the time that energy prices rose the final units of the country's most giant coal-fired power plant were closed. Although this would have contributed to the price rise, it wasn’t the only factor. A lack of wind generation was also a factor in higher prices as this was lower than usual.
How will this affect your business?
Considering the comparative price increase, it's understandable to question its potential impact on your business. However, it's essential to remember that current energy prices, while higher than earlier this year, are significantly less than the peak prices witnessed last winter.
This comparative difference suggests that the recent rise in energy prices should not significantly affect your business's operational costs or overall profitability. Businesses that planned their budgets based on last winter's severe price hikes will likely find the current situation considerably more manageable.
Nevertheless, it is still prudent for businesses to strive for optimum cost-efficiency. Ensuring you're getting the best energy prices can significantly contribute to this goal. Resolve Energy can support your business in this regard. With a team of experts dedicated to analyzing energy markets and securing the best prices, Resolve Energy can help you navigate these price fluctuations and find a package that best suits your business needs. This way, you can focus on what you do best - running your business, while we take care of your energy costs.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
