What is energy market backwardation and how can your business benefit from it?
Backwardation offers businesses an opportunity to secure more favourable energy rates by acting strategically and leveraging forward markets.
The UK energy market is currently experiencing backwardation, where energy for delivery in future years is lower than the energy price for immediate delivery.
This offers businesses an opportunity to secure more favourable energy rates by acting strategically and leveraging forward markets.
Why are we talking about this?
Regardless of size and sector, every organisation relies on energy to power their daily operations. This renders utilities a business priority and energy procurement a key operational decision.
However, the energy market is intricate and instantaneous. Continuously reviewing and adapting your energy procurement strategy when required ensures its effectiveness.
Due to its nuance and immediacy, the energy market can be inordinate to navigate alone. An experienced expert partner can help you make the most of the opportunities a dynamic energy market continuously offers – like now with backwardation.
The foundation of Inspired’s procurement offering is continuously monitoring and analysing global energy markets to form expert insights.
Our “Buying energy smarter: Cost control opportunities in 2025 and beyond” guide talks you through what backwardation is and what to consider when leveraging it.
What is included?
- Why is the market backwardated?
- Implementing effective energy procurement strategies and choosing the right strategy for your organisation.
- How to leverage market intelligence.
You can download the guide by filling in the form below.
