Shoulder Months can sometimes present an opportune time to lock in a fixed rate for energy budgets, as low prices can be locked in to ride out the typically more volatile periods that often follow.
“Shoulder months” refer to the two usually less volatile periods in energy markets that occur March–April and September–October. They are driven by natural gas, but also affect electricity markets, as much of our electric supply is produced through natural gas.
With temperatures usually more moderate it causes fewer people to rely on natural gas, resulting in lower demand which in turn contributes to market prices dropping.
Similar to natural gas, electricity prices also suffer from “shoulder month” slumps. This occurs for much of the same reason as natural gas. Electricity demand typically hits it peak in the summer months when cooling demand is at its highest.
Watch this 43 second video to learn more about shoulder months