The price of natural gas and electricity is rising. ACT NOW!
Since April of last year -- you’ve heard Bid On Energy, and others warning of an upcoming natural gas and electricity price hike that could impact energy prices for years. That moment is finally here.
If you have not already hedged gas or electricity contracts expiring in the next several months, NOW is the time for action. We do not say this lightly. If you do not procure your power needs NOW for 2022, you will be looking at a 20-40% increase in energy costs for your business and or portfolio for years to come.
There have been warning signs and data to back this up. Our own President and National Security Advisor have openly discussed their concerns. While this was in the context of gas prices at the pump it should give pause to how this will impact your business.
Not convinced of Bid On Energy's advice and data?
Look at what Goldman Sachs is saying about potential natural gas and that Natural gas prices are rising and could be the most expensive in 13 years this winter!
Based on the shape of prices in the forward markets, anyone who hasn’t already hedged their natural gas / electricity or has contracts expiring in the next 18 months including commercial electricity, should heed the following recommendations for hedging your gas and or power needs.
What can you do?
- Anyone who has not already hedged their natural gas or electricity, or their contracts expire within 18-months, look to execute hedges starting in 2023 thru 2025. The Risk of inflation is high and hedging energy for natural gas near $3.00 per MMBtu is in your customer’s best interest.
- If you have no contracts expiring in the coming months, wait for a “pullback” from the current pricing to execute hedges through the end of 2022. When the market increases exponentially as it is currently, there will be an equally sharp pullback in the future. Weather is often the primary trigger for this. If there is a cold winter the decline may not come until spring 2022.
- If you have hedges expiring within the next few months, set up a 15-minute strategy call. We will help you determine whether to wait or lock-in rates long-term immediately.