Winter is Coming – Have You Thought About Business Energy Prices?
Business Energy Prices
Energy is one of the most overlooked necessities by businesses, with most spending more than they should on their bills. Winter is just around the corner and an increase in usage during the chilly season just makes matters worse. In this article, I will cover the problem with business energy, what you can expect in the future and what you can do to cut costs.
Energy prices are constantly fluctuating every year and just recently British Gas’s standard electricity prices went up by 12.5% for most users in the UK on September 15th, 2017 (Source). The Climate Change Levy rates have been increasing year-on-year from 2011 for all types of energy (Source), so even if business energy prices themselves stay stagnant, businesses will still see an increase in how much they pay. The UK is simply struggling with its own energy demand and businesses aren’t helping themselves with shallow research into deciding their energy provider.
One clear trend that occurs every year is the rising of energy usage during winter, where the UK’s national energy consumption will increase, as will the demand. This will result in people paying more for energy, and if businesses are already not getting the best deal possible, they could see lots of needless spend during the winter period.
Is Brexit bad for your energy?
When the UK actually leaves the European Union, businesses could see an increase in energy prices if the UK cannot sustainably supply enough energy and has to resort to more importing than it already does. Already, the UK imported a huge amount of energy, with 36% of all energy used in 2016 being imported (Source) and 38% of UK gas imports coming from Europe (Source). Once the UK leaves the EU, the price to import from countries in the EU may increase, meaning your energy prices will increase also.
The value of the Great British Pound has decreased since the official EU withdrawal process on March 29th, 2017, where 1 GBP converted on average to €1.15 (Source). Currently (30th October 2017), 1 GPB converts on average to €1.13 which is a slight decrease of 1.74%. If the pound continues to lose its value or stay stagnant, everyone in the UK can expect to see an increase in energy prices.
Can Brexit be good?
Currently, the UK is involved in EU Energy Projects, but if the UK were to leave the EU it doesn’t mean it would no longer be involved in these current projects. And, there is a debate that the European Union is actually the cause of energy problems in the UK, due to pressures on the closure of Coal and Oil Power Stations when reliable renewable replacements have not been built to take their place.
While in the EU, the UK is pressured to produce 15% of electricity from renewable sources by 2020, which could be exited once the UK has left. Currently, the UK is predicted to miss this target and could have been struck with heavy fines from the European Union if it were a member. This means the UK is not backed into a corner to meet these demands and has more leeway in the use of fossil fuels which could lead to cheaper electricity prices.
Of course, according to UN regulations and the 2007 Energy White Paper, the UK can’t completely forget renewables and focus on fossil fuels, but leaving the EU will give the UK more space in its energy production/use.
Also, in 2016 only 4.9% of the UK electricity supply came from imported electricity, mostly coming from France, the Netherlands and Ireland (Source). The UK is not a large importer of electricity, so electricity prices probably won’t increase greatly in the future. Whatever happens, whether business energy prices go down or rise, you’ll definitely want to find the best deal regardless.
The solution is simple, find a better deal. But with so many different energy providers out there this task is time-consuming and frustrating.
We offer a free service to find you a range of tariff options to best suit your business. We are working with over 20+ energy supply partners that are constantly reviewed and our portfolio of partners are always updating, meaning you benefit from extensive research. To find out more, go to our dedicated Energy page and find out how you can save 40% on your energy bill
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