16 April 2007 | Paul Snell
Energy bills will continue to rise in the next few years despite recent price falls, according to procurement professionals.
A survey by consultancy EnergyQuote of more than 100 of Europe's largest energy buyers found more than half believed prices would continue to rise over the next two years. Only 10 per cent thought the market was in decline.
Buyers cited the continuing conflict in the Middle East as the major cause of the increases, with the impact of weather conditions the second most important influence. Yet the survey revealed that most buyers did not expect any major swings in energy price before the end of the year.
It also found only 40 per cent of buyers used a risk management policy when making their buying decisions. One-third of buyers hired an external expert to draft this policy, while 25 per cent used historical price data to influence their strategy.
* See today's blog to have your say (www.supplymanagement.com/blog)