Can Businesses Mitigate Rising Energy Prices? #podcast #accountancy #energy @Icaew

Why It Matters

Understanding contract timing helps firms limit exposure to volatile gas prices, protecting margins and cash flow.

Key Takeaways

• Gas prices rose ~40% in past three months.
• Short‑term contracts hit harder than long‑term agreements generally.
• Firms with contracts expiring 2026 face greater exposure.
• Proactive contract strategy can reduce price‑risk impact significantly.
• Electricity price spikes remain less severe than gas.

Summary

Businesses are grappling with soaring energy costs, especially natural gas, as highlighted in a recent ICAEW podcast. The discussion zeroes in on a roughly 40% jump in gas prices over the last three months, noting that short‑term contracts have borne the brunt while longer‑dated agreements remain comparatively insulated.

The hosts explain that firms whose gas contracts expire in the near term—such as April 2026—are far more exposed to market volatility than those locked in until 2028. This timing gap amplifies price risk and underscores the importance of contract timing in energy budgeting.

A key example cited is the contrast between a 2026‑expiring contract and one extending to 2028, illustrating how proactive renegotiation can shield companies from sudden spikes. Advisors stress that early strategic planning, including longer‑term hedges, can mitigate unexpected cost surges.

For businesses, the takeaway is clear: revisiting energy procurement strategies now can prevent larger financial hits later, making contract length a critical lever in managing rising utility expenses.

Original Description

In this latest episode of the ICAEW's Accountancy Insights podcast, Greenfields Energy Group’s co-founder Liam Conway outlines the best ways for businesses to protect themselves from global energy shocks.

Listen to the full podcast at https://www.icaew.com/insights/podcast/accountancy-insights/can-businesses-mitigate-rising-energy-prices.