The Smart Time to Secure Energy Savings
As we move through the spring of 2025, a seasonal opportunity has emerged for energy buyers. The current shoulder season—a time of mild temperatures and low energy demand—has led to favorable market conditions for electricity and natural gas. By understanding this season’s dynamics and global influences, businesses can make strategic decisions to lock in low energy rates and reduce long-term costs.
What Is the Shoulder Season?
The shoulder season refers to the transitional months of spring and fall when heating and cooling demands are minimal. With HVAC systems running less frequently, overall energy usage drops significantly. This lower demand leads to softer prices in the market, creating an ideal environment for procurement. Energy suppliers also use this time for maintenance, adding another layer of market calm.
Why It Matters
Securing energy contracts during the shoulder season has several key advantages:
Lower Prices – Reduced demand typically translates into lower natural gas and electricity rates.
Market Stability – With fewer weather extremes and supply shocks, prices are generally more stable.
Budget Certainty – Locking in a fixed rate during a low-cost season can shield your business from summer and winter volatility.
Market Update: Why Now Is a Strategic Window
Several indicators make this shoulder season particularly advantageous:
U.S. Gas Storage Levels:
As of late April 2025, U.S. natural gas inventories are more than 30% above the five-year average. According to the EIA, milder weather and strong production have contributed to record storage builds. High inventories typically put downward pressure on prices—especially during the spring shoulder season, when consumption is already low.
LNG Exports and Global Trends:
U.S. LNG exports hit record highs in early 2025, driven by strong demand from Europe and Asia. Despite rising exports, domestic prices remain subdued due to abundant supply and mild U.S. weather. This disconnect between global and local demand creates a rare window for U.S. buyers to capitalize on favorable pricing.
Outlook and Projections:
The International Energy Agency (IEA) projects a 5% increase in global LNG supply in 2025, while natural gas demand growth slows to 1.5% due to macroeconomic factors. The combination of strong supply and moderate demand supports continued price softness in the near term.
Strategic Energy Procurement with Neighborhood Energy
At Neighborhood Energy, we specialize in helping clients take advantage of favorable market conditions—like the current shoulder season—to reduce costs and add budget predictability. Here’s how we support your business:
EnergyMax: Our signature program, EnergyMax, combines three powerful elements— concierge-level service, a virtual energy department, and detailed monthly reporting—to give your business complete energy oversight.
Market Timing: We track real-time pricing and alert clients when conditions are optimal for procurement.
Tailored Procurement Strategies: Whether you have one account or a portfolio, we create customized plans based on your load profile and risk tolerance.
Contract Negotiation & Management: We leverage our supplier relationships to help you secure third-party rates that often outperform utility default rates.
Conclusion
The 2025 shoulder season offers an ideal time to take action. With strong U.S. gas storage, low seasonal demand, and a soft pricing environment, locking in your next energy contract now could yield significant savings. At Neighborhood Energy, we guide you through every step—from market analysis to contract execution—so you can focus on running your business while we manage your energy strategy. Ready to make your move? Let’s secure your energy peace of mind before the summer heat kicks in.