AN ENERGY MARKET UPDATE FROM MICHAEL BOVEN OF SO ENERGY

Sadly we can do very little about market volatility. Everyone hopes for stability but the fact is that 2022 contracts may still be tying farmers in at prices in excess of the current market.

The Government energy relief scheme ended on 31st March and was only available for 6 months. Some members may have had a shock the following month when bills showed significant increases. Of course, it may be possible in some cases to ask for an early release from the contract subject to a termination fee.

Despite The fact that Ofgem expects the energy price cap to fall, the market remains volatile due to oil production cuts, outages, faults within nuclear reactors and potential strikes. With that in mind we are still recommending short-term pricing but we are mindful that farmers are having to manage increasing input costs.