Topic: Energy Volatility Can Secure Cheap Electricity Prices For Your Busines
Like any other traded commodity, the energy markets experience fluctuations in price which are determined by a variety of factors. The volatility of the energy markets is ultimately responsible for the fast-changing electricity prices which affect how much you pay for your utility bills.
Whilst for residential home-owners there is very little that can be done to respond to the volatility of electricity prices apart from to switch electricity supplier, business customers have much greater control over their energy purchasing power.
Business clients are offered quotes from wholesale electric suppliers based on the wholesale price of electricity at any given time on the market. If you are responsible for managing your company's utility bills, finding the best electricity prices based on when market wholesale prices are at their lowest is quite a skill.
The people who determine wholesale electricity prices are market traders who analyse the relative supply of electricity against current demand. If there is a surplus of electricity when demand is low, then the wholesale price will go down. On the other hand, if demand is high and there is a shortage of supply, then prices will go up.