In-house energy brokers at Apollo Energy have announced that now might be a better time than ever to secure longer-term gas contracts over their shorter-term counterparts. Based on the data we collate here at Apollo Energy, we have been able to conclude that the wholesale gas market is in a state of 'backwardation'.
What does this mean?
The way the gas markets are sitting at the moment means that future gas prices are currently cheaper than nearer periods. As you may be aware, this is a rare scenario. Whilst we can't guarantee that this will lead to a lower unit rate/annual contract value, it spells the perfect opportunity for your business to see if you can save on your business gas costs.
What does this look like?
Energy experts here at Apollo regularly put together graphs to demonstrate market trends. Here, we provide a graph that looks at the current 1-year vs. 2-year commercial gas prices. As you can see, the orange circle marks the cross-over point at which 2-year contracts would work out cheaper than their 1-year counterparts. More recently, you can see that both prices are on the decline - with the 2-year contracts still coming out cheaper.
Don't risk missing out on what could mean cheaper gas contracts for your business. Speak to us today to find out if your business can take advantage of this rare market occurrence.