How backwardation could equal big energy savings for your business

December 2nd, 2019

During the past five years wholesale gas and electricity prices have been rising rapidly, until a recent shift which saw the market enter a state of backwardation.

Backwardation occurs when the current price of a commodity is higher than its future trading market price. In the case of UK energy, this current state makes now an extremely lucrative time for businesses to lock into long-term utilities deals and reap these lower prices for longer.

Whilst gas and electricity costs aren’t necessarily always at the top of a business’s priority list,
reaping these rewards today – which in some cases stretch until summer/winter 2023 – delivers on everyone’s long-term organisational strategy to streamline and ultimately reduce essential overheads.

Why choose an energy broker?
Here at the Utility SwopShop, our focus is our customers, which means delivering on our vision of bringing transparency and honesty to the UK utility markets.

In an ongoing quest to keep costs down, an increasing number of businesses now recognise the financial benefits of deploying the support of a registered energy broker, utilising their deep understanding of the commercial energy market to make informed and impartial buying decisions
from a suite of suppliers and tariffs.

As experts in supporting private and public sector organisations of all sizes – from commercial offices through to retail outlets – in securing the best long-term energy deals, registered brokers work in partnership with multiple UK energy suppliers to identify the most competitive prices.

The energy market’s current state of backwardation won’t last forever, with prices beyond 2023 already on the rise today. By agreeing to a long-term energy deal, customers can lock in these
prices now and for several years into the future, thus protecting their business against future rises.

Written by Jason Thackray, commercial director at Utility SwopShop

Founded in 2014, Blackpool-headquartered Utility SwopShop focuses its energy on its clients. Its team of registered brokers support organisations by monitoring gas and electricity prices daily and securing its customers the very best prices and deals in the market. To find out more, email or call 0333 9000 246.

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