Business Energy Market Update: December 2024

As November 2024 drew to a close and Winter came upon us temperatures started to drop and the energy market rose. Early reports of a colder than average Winter for the UK predictably saw rises across all forward contracts out to Winter 26 for gas and electricity.

The biggest gains were for Winter 24/25 which saw rises of around 15% on wholesale with the increases falling away to a few percent by the time Winter 26 comes round. Its not all bad news though and political changes across the pond may well see energy prices fall next year but that remains to be seen.

In a move that will be welcomed by all but the hardiest of Green Energy campaigners EDF announced this week that they will be extending the operational lifespan of 4 Nuclear reactors in the UK. Even those generally opposed to Nuclear Energy agree that keeping existing plants operational, whilst still creating some amounts of difficult to handle nuclear waste, is better for the planet than early decommissioning. The four sites generate 4.5 Gigawatts of energy between them which is enough to power a huge 4.5 million homes.

Crucially, Torness and Heysham 2 will now continue to operate until 2030 reversing a recent decision to close the sites early due to cracking of the Graphite control bricks used to contain the nuclear reaction. The decision to shut down early, taken in 2021, immediately saw energy prices increase within the capacity market, a key component of UK Energy bills and this decision to extend the plants will likely see a much needed reversal of that trend.

Its nearly time for the big man, fond of fur trimmed red outfits, to come visiting us so I thought it might be a good idea to share CUS’ top tips for saving energy on Xmas lighting, everyone loves to see the pretty lights this time of year and even just a few fairy lights can bring a little extra joy. Our tips apply for both business and at home so everyone can benefit:

Set a Timer: Electronic timers are relatively cheap these days and generally last for years. As a bonus they can have energy saving applications all year but at Xmas, use your timer to make sure the lights are only one when you are at home. Indoor displays can be timed to coincide with bedtime whilst outside, once the small hours are upon us its best to turn off.

Think about your power usage: Even if you don’t have timers, remember to go round and turn the lights off at bedtimes. Or, if you are out all evening, turn all the lights off before you go out. If you want to put a show on for the whole street but won’t be in, go a step further and ask a neighbour to look after your lights.

Use off-peak electricity: Many homes have an economy 7 meter which offers cheaper night time power or have smart meters fitted which can provide access to electric car tariffs etc and Xmas lights can easily be piggy backed to run at the same time as the cheaper electricity.

Use Solar: Even though the sun doesn’t shine much this time of year, there’s still enough sunlight to power LED lights for out-doors. An added benefit is once these lights are installed, they run without any further input from you and can often make a great addition to your summer garden for those lazy evenings out on the patio.

Theres lots of other things you can do at work and at home to make sure have a cosy festive season that doesn’t cost the earth.

• Fit draught excluders to doors and check your windows for draughts, many window systems allow for adjustments to openings and over time these need to be fine-tuned to ensure a good seal.

• Don’t forget to turn your thermostat down if you have a party or are cooking for lots of guests, there’s nothing worse than overheating and letting all that energy out through having to open all your windows.

• On the subject of cooking only use just enough water to boil or steam vegetables and always keep your lids on. Ovens and oven doors should be clean and only opened for the shortest amount of time and please make sure your leftovers have cooled before putting them in the fridge.

Have a great Xmas and New year from the team at CUS.