The energy market has been more exciting and volatile than ever in recent years. Numerous developments - both foreign and domestic - have had an impact on electricity and gas prices and the market situation. In today's article, we therefore look at the question: What are the current trends in the energy market relating to energy purchasing that we need to be aware of?
Over the last three years, clear developments have emerged that we would like to briefly explain to you. Why can we do this? Because we connect hundreds of German companies and around 700 energy suppliers and link them digitally via our energy marketplace - so we know the goals, challenges and opportunities in the energy market very well and can provide our customers with the best possible advice and information in this area.
Trends in the energy market - what you should know as a buyer!
1. price level as before the energy crisis
If we look at energy prices, we see prices at a higher level, but at around 10 ct/kWh on the exchange at the beginning of December 2023 for 2024, lower than in the previous crisis years. Energy prices have stabilised again and are no longer at around 100 ct/kWh, as they were in 2022, for example. However, it is still important to monitor the exchange regularly and launch a tender when favourable market opportunities arise. With enPORTAL connect, your tender can be completed in just a few hours, so that you receive prices close to the market with low risk premiums from suppliers.
2. long-term electricity or gas purchases tend to be more expensive
Since the energy crisis, energy suppliers have been demanding higher risk premiums for the long-term fixing of stock market products. Why? Long-term hedging is still associated with greater risk, more financial outlay and higher financing costs. Companies have to bear these additional costs, so new or alternative procurement models may need to be examined. With enPORTAL connect, we support you in choosing the right procurement model and adapt it not only to your individual needs but also to market conditions.
3. creditworthiness plays a greater role
One trend in the energy market is the closer scrutiny of creditworthiness on the part of energy suppliers. Customers are being scrutinised even more carefully than before the energy crisis. In the crisis year 2022, there was a noticeable reluctance on the part of suppliers, particularly when it came to larger energy volumes; this has since been reduced, but creditworthiness is still an important factor in the pricing of energy prices or the abundance of supply.
4. variety of procurement models
At the beginning of 2024, it became apparent that the energy market was operating with smaller-scale products (spot market components and vertical tranches) and that customers and suppliers were adapting to new procurement models. Even smaller companies switched to tranche models. It is no coincidence that enPORTAL has adapted the tendering modalities on its energy platform so that all procurement models - from fixed price, horizontal and vertical tranches, with and without spot market components, purely spot market or portfolio - can be mapped from now on. The IT service provider is therefore ideally equipped to support you as a buyer in finding and implementing the best procurement model.
How can these trends now be utilised and what can purchasers do to implement energy purchasing in the best possible way? We have summarised our tips for you:
This allows you to capitalise on developments in the energy market:
- Ensure that your energy data is complete and up-to-date at all times. This will give you the best basis for negotiating with energy suppliers when favourable market opportunities arise.
- Stay flexible and act quickly when opportunities arise in the market. Monitor the exchange at all times and write out when prices are low. This is quick and easy with a digital energy marketplace like enPORTAL connect.
- Check whether your company can switch from fixed-price to tranche models or other procurement models. This is currently worthwhile from an annual consumption of 5 GWh, i.e. for typical medium-sized companies. enPORTAL connect provides support with professional energy expertise and enables you to switch from one procurement model to another in the shortest possible time.
- Make sure that you are informed about important market developments and new trends at all times so that you do not miss any new opportunities for your energy purchases.
Do you have any questions on this topic or would you like further information? Please do not hesitate to contact us!
