Even in the best of circumstances, it is difficult to forecast energy costs, and the current level of market instability makes it impossible to state whether energy prices will decrease this year. Despite the fact that prices have fluctuated throughout the year, the general trend has been upward.
Energy researchers and research firm Cornwall Insight have predicted that prices may continue to rise well into 2024.
The prices you face won’t change for the rest of the year and into 2023, though, thanks to the revelation that the energy price guarantee has capped prices for both households and businesses.
The only approach to maintain bill stability in a volatile market and guard off future price increases is to fix your energy prices.
Although it’s impossible to forecast if prices will go up further, they have increased dramatically over the past year, and anyone who had a fixed plan in September 2021 would have saved a lot of money on their energy costs.
It’s doubtful that you’ll have to switch until at least April of next year due to the implementation of the energy price guarantee in October. This is due to the fact that most firms’ energy costs will be limited till then.
When in doubt, think about performing a Business Energy Comparison of rates from various trusted energy providers in the UK.
It’s crucial to contact your provider right away to work out a payment plan if you are struggling to pay your company’s energy costs. In under 30 days of your missing payment, if you don’t resolve the issue with your supplier, they may take steps to cut off your energy supply.
The chief executive of Centrica, the holding firm of British Gas, has said there is “no reason” to anticipate gas prices to decline sometime soon, despite the fact that it is challenging to foresee exactly what will transpire in such a volatile energy market. He even predicted that there would be high petrol costs over the following 1.5–2 years.
The government seems to be dealing with tension by intervening and assisting customers by reducing the VAT or other fees that are not clearly connected to the wholesale energy prices.
Trade organizations have urged the government to provide financial assistance to company owners in the form of reduced energy-related VAT, a commercial energy price cap, as well as a Government Emergency Energy Grant for SMEs – basically, Covid-style aid for this most recent crisis.
Now that a price limitation on commercial energy has been established, there are few specifics available. Beginning on October 1, the price cap will be in effect for six months.
After three months, there’ll be a review to determine if the cap should be increased for particularly fragile sectors, such as the hotel industry.
Businesses must lock in current prices as quickly as possible if they want to protect themselves against out-of-contract charges and any likely new price increases.
It might be beneficial to consider how and when you use gas and electricity if you wish to reduce the cost of your company’s energy bills. Think about the following, then:
• Examine the times you heat your building.
• Turn off appliances,
• monitor the weather,
• and get a smart meter to cut costs
• Be aware of the price of water.
• When they’re not in use, turn off the lights, or install light sensors.
• Encourage your team to be energy conscious.
• Ensure your structure is airtight.
• Avoid using paper as much as possible.
• Obtain an energy audit.
But you must also maintain reality. If your energy prices increase, you could still notice it on your income statement even if you implement all practical energy-saving strategies and drastically reduce your consumption since you still need to consume a minimum amount of energy to keep your business operating.
There are different business energy tariffs available; if you select the incorrect one, your company will spend too much on energy supply.
Additionally, because you are bound to the terms of the contract when you sign a business energy agreement, you may be overpaying for up to 5 years.
Here’s why it absolutely is worthwhile to compare business gas and business electricity packages, even if you might be thinking if it’s really worth the effort.
If you haven’t yet changed your business energy supplier, your existing supplier will put you on an exorbitant “out of contract rates” arrangement. These prices may be up to double the cost of contracted rates and even more so in the present market.
When switching, you should be aware that the prices you receive will depend on a variety of factors, including how much energy you use, where your business is located, and whether or not your company is financially stable.
If your company has a low credit score, you may wind up paying higher prices since your company is seen to be riskier.
Additionally, it’s important to be aware that corporate energy providers do not provide dual fuel contracts, although if you subscribe to a gas and electricity arrangement from the same provider, those will still be two different energy contracts.
One of the two situations listed below will occur to your energy contract if your company relocates:
• It will be moved to your new place of business.
• It will be canceled, and you’ll have to establish a new agreement at your new location.
It’s uncommon to be given the option to cancel a commercial energy contract early after signing one.
This is so that your supplier won’t lose money if you terminate the contract before the predetermined end date since it will purchase the appropriate amount of energy to last you the whole period of the contract.
Moving your company is a rare opportunity to terminate your existing business energy contract slightly earlier and transfer to a better price, but you must carefully consider your alternatives before making the transition.
Your provider will handle the transfer of your current energy contract to your new location, ensuring no problems arise and that you are only charged for the period beginning on the day you relocate into the new location.
If you decide to transition to a new agreement with a different provider, you will need to make arrangements for the settlement of your last commercial energy bill or for any refunds you may be owed if your account has been positive.