Businesses are NOT Protected by the Energy Price Cap.

 

The new Ofgem price cap in April will ONLY protect domestic users. This is big news for businesses as it creates more uncertainty in the cost of running a business.

Unlike your household energy, if you let your business fall on out of contract rates you will be pay a significant premium. There have been some businesses who unknowingly pay between 200-500% extra than if they were on fixed term contract rates instead.

 

SO WHAT DOES THAT MEAN FOR YOUR BUSINESS?

 

Wholesale gas has peaked at over six-times the pre-2021 record and market analysts say there is no sign of downward pressure on prices for the next few years. Energy markets are also heavily dependent on how the conflict between Ukraine and Russia develops. Wholesale gas prices have surpassed UK records this year due to the energy crisis and the conflict in Ukraine.

 

Suppliers can amend their out-of-contract rates for businesses when they wish; and have been increasing their rates each month in order to afford the elevated wholesale prices of gas and power.

 

 

WHAT DO WE RECOMMEND?

 

Prices will continue to remain volatile and be impacted by any outcomes decided by or against Russia, increasing the demand for non-Russian sources of gas or if Russia continues to decrease or completely stop supplies to European countries who are largely dependent on them. We still recommend longer-term energy contracts, which can fix a price to avoid any further increases as well as provide budget certainty over the next few years. 

 

 

Phone: 01925 599 201 

Email: info@telecomsolutionsltd.co.uk

 

Head on over to our business energy solutions page for more information.

 

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