With the impact of the lock-down on businesses worldwide, you’re probably wondering when it’s going to end and how to best manage your business while services are put on hold. Saving money on your business energy or any outgoings can always help.
The lock-down presents a time of challenge, but it’s also a time to reflect on your business goals, how to make changes and how to save money in certain areas. When the business world starts returning to a new normal, you’ll be ready to get going.
One way you can save money at the moment is through your gas contract. There are many reasons for this, if you’ve been questioning your business use and whether you could benefit from a better gas contract.
Larger clients stand to gain hundreds of thousands of pounds over a two or three years with a fixed single rate contract. In particular, if your business has a heavy gas dependency, now is a great time to seriously consider switching your business gas contract.
Oil prices have fallen – Effect = lower business gas prices
Due to the effect of the lock-down on the economy, there’s been a glut in oil prices, with Saudi Arabia and Russia in the midst of a price war. Oil demand has actually gone down to its lowest for the first time in 25 years, which began since the outbreak of Covid-19 in China at the end of 2019. This has already had a knockdown effect on the cost of gas and the types of tariffs available to both businesses and households. As oil rates affect the consumer cost of gas, this has had a knock-on effect on the price of oil, which has fallen dramatically. This, in turn, will impact some of the rates being offered to consumers by smaller specialist energy suppliers and a few of the larger ones.
Wholesale gas prices have gone down
Due to the impact of Covid-19 and the slowdown of the economy, the price of wholesale gas has seen a continued decrease, according to Ofgem. This drop in wholesale gas is because there is a good supply of gas stock plus pre ordered ships full of liquefied natural gas heading for our shores, but with less demand for the product. This has been ongoing since the end of 2019. Rates are changing every day, but it’s expected that rates will continue to fall, which businesses can reap the benefits of if they act now.
Smaller and more specialised energy suppliers are expected to change their rates for new business customers. This is in accordance with the decrease in wholesale costs. That means it could be worthwhile to shop around for an alternative gas contract.
More flexible contracts
Do you have a high need for gas on your premises? You could benefit from a gas contract with greater flexibility. Either one that offers a lower, guaranteed fixed rate or charges for your energy when you need it. As Concise Energy helps you source competitive deals, you’ll find some energy suppliers offer a wider set of options.
Help to Find A Better Gas Contract
Sometimes the complexities of your energy use and finding out the tariff that’s right for you can be hard.
Or just too much of a bother to shop around for the best one.
Gas contract not up for renewal yet? No worries, because a business energy consultant can price out your contract up to 18 months in advance. This means you don’t have to wait for the opt-out period. Then, when you switch, you can get the new fixed-rate guaranteed for the period of your new contract.
Concise Energy has supported many customers to review their gas contract and help them make savings. Offering a personalised and committed service, Concise’s team of experts can find a gas contract tailored to your business needs.
Want to find out how Concise Energy can help you save money on your gas contract?
Some larger energy suppliers are not changing their pricing at all, but many are reviewing their rates. Some offers are available now and more will be ready in the near future. Concise Energy’s team of helpful staff can help you navigate your way easily around different tariffs.
Click here to book in a free telephone consultation.