Spot Price

Key takeaways

• Spot price is the price for energy delivered now (or very soon) — typically intraday or day-ahead.
• Spot prices are volatile because they reflect immediate supply/demand balance.
• Most business contracts insulate you from raw spot moves; only fully-indexed flexible arrangements track it closely.

What is the spot price?

The spot price is the price of energy for prompt delivery — usually within the next 24 hours. It contrasts with forward prices, which are for delivery weeks, months or years ahead.

In GB electricity markets, ‘spot’ generally refers to the day-ahead or intraday auction prices. These can move sharply on weather forecasts, plant outages, or surprises in interconnector flows.

Why spot prices matter

They signal the immediate cost of energy, which informs supplier hedging top-ups for the next day.

They drive any contract type that passes through short-term wholesale prices — usually a flexible or tracker arrangement.

They’re a public reference point for ‘how expensive was energy last night?’ — even if your contract didn’t feel that swing directly.

Sources

1. NESO — National Energy System Operator (Britain’s electricity system operator)
2. GOV.UK — Department for Energy Security and Net Zero (DESNZ)
3. Ofgem — Energy advice for businesses