Due to the current Covid restrictions, we are in the worst economic downturn since the Second World War, and the government has predicted that the economy will shrink by a third. This caused the wholesale gas prices to tumble resulting in cheaper energy contracts.
Regardless of the current situation, the energy suppliers have taken every opportunity to claw back their substantial losses from earlier in the year, they have learned their lessons and will no longer overstock supplies causing massive price drops.
Business energy price rises?
October is usually the best time to switch your energy contract, just before the winter cold sets in, and energy prices increase again, and not in Spring or Summer as most people think.
You should consider procuring energy quotations well before your existing contract ends as otherwise, you will end up paying hugely inflated rates by leaving it to the last minute, and if you call your supplier to renew your contract you can ask them to lock in the new contract months before your current one expires. This does not always result in a cheaper contract of course as prices normally increase year on year, so be wary of this. Your supplier should contact you to warn you of the impending contract end date, or if not there is now a regulation which was brought into force by Ofgem (The Office of Gas and Electricity Markets) for this date to be printed on every one of your bills. Make sure you set a reminder.
When switching suppliers, it is always a good idea to get help from a business energy broker/ consultant such as Concise Energy, who will compare prices with some of the main 6 as well as smaller suppliers. The broker/consultant will help you get the best deal possible for your business.
The three main contracts on offer by suppliers are:
Fully Fixed – This does not mean you pay the same every month, but the price per unit (kWh) doesn’t change. The amount you pay depends upon your consumption.
Passthrough – The price per unit usually stays the same but the non-commodity portion charges vary according to the market rate.
Deemed rate – This is the contract you will automatically be placed on if you fail to negotiate a new contract. It will be their most expensive rate.
So make sure you act now before winter sets in and make much-needed savings for your business.