What to Know, Now: Energy Market Update April 2018


The weather hasn’t warmed up, and neither have gas prices. This is a good time to buy electricity and natural gas.

Shoulder months such as April, May, October, and November are often the best times to buy energy. The volatile winter is behind us and pricing has been in a favorable range. But summer weather ahead will bring price volatility. Pricing has been down despite lower storage amounts of natural gas, which may impact the market as we get closer to Summer.

The Bottom Line

Current third-party supplier fixed rates still compare favorably to 2017 utility rates and present opportunities to reduce costs through both fixed and variable supply contracts. Many customers who were hurt by high variable pricing this January and February would benefit from a cost reduction and budget certainty.

What to know about 2018

Today’s lower prices may be temporary. In April, valid weather forecasts for the summer are released and they predict a hot summer. This would increase demand for burning natural gas to create electricity for meeting higher air conditioning needs. The chain effect is higher pricing for the near future, summers, and winters. If you have contracts expiring in 2018, you may want to price them early and evaluate your timing on completing your supply contracts. If you are receiving energy procurement services from Bright Power, we are already planning this evaluation for you.

Why Act Now

The mix of upward price pressure from a larger storage deficit and downward pressure from record levels of production are creating an uncertain future. Look to protect prices this summer and to prepare to capture the winter prices when the market is favorable.