Throughout 2024, many UK businesses hoped that energy prices would fall further after the volatility of previous years. With memories of the energy crisis still fresh, it was understandable that decision-makers wanted reassurance before committing to new contracts.
However, market data from tells a clear story: for most businesses, waiting usually meant paying more.
A Year of Gradual Price Increases
At the start of 2024, wholesale gas and electricity prices were relatively stable. European gas storage levels were healthy, demand was moderate, and global supply chains appeared to be improving. As the year progressed, this stability slowly eroded.
Prices rose steadily due to a combination of factors, including:
Rather than sudden spikes, 2024 was characterised by slow, persistent upward pressure.
Why Waiting Didn’t Work
Many businesses delayed fixing their prices in the hope of securing better deals later in the year. In reality, this approach rarely paid off.
Our analysis shows that during 2024, businesses who waited six months before fixing were far more likely to face higher prices than lower ones.
Put simply, the market was moving in one direction: upwards.
Those who secured contracts earlier in the year typically benefited from:
The Lesson from 2024
The key lesson from 2024 is that in a rising market, delay increases risk.
When prices are trending upwards, waiting for ‘the perfect moment’ often means missing the best available opportunity.
For many businesses, fixing early in 2024 proved to be the safest and most cost-effective strategy.
Looking Ahead
Understanding if the trend is rising or falling is essential before making procurement decisions. In 2024, the signs of upward pressure were already present, and those who recognised them were rewarded.
