Last week Bira reported the impact of rising energy prices due to the recent increase in cost of gas (along with low gas stores) as well as poor wind generation over the summer months and the recent fire at the UK-France interconnect.
How will the Energy Crisis affect my business?
What if I’m on a fixed rate tariff?
If you’re currently on a fixed rate energy deal with your supplier, the price you pay for each unit of gas and electricity is locked for a set period. If you have more than six months left of your fixed rate tariff you shouldn’t be as affected.
How to check how long I have left on my fixed rate tariff?
You can check if you’re on a fixed rate tariff by looking at your most recent energy bill, in the section dedicated to your key information. You can also check by calling your energy provider and giving them your account number.
What if I’m not on a fixed rate tariff, and what about the Government’s “Price Cap”?
The Government’s price cap does not apply to businesses and only protects consumers from expensive default tariffs. If you’re not currently on a fixed rate tariff your energy providers standard variable tariff is the only backstop for businesses and that can change at any point.
If you’ve recently moved to a new business premises and have not agreed a new contract, or if your contract has ended and you stay with the same supplier, you’ll likely be on one of the most expensive tariffs.
What happens if my energy provider goes bust?
If your supplier ceases to trade, take a meter reading and don’t switch yet. Your current rates will change when the supply is automatically given to a new supplier. When your new supplier contacts you, you’ll have the option to choose a new provider before you agree to a new contract.
How can Bira help?
Bira has partnered with Utility Options to provide members with the lowest cost quotations in the market and help you to switch at no additional cost.
For businesses that have utility renewal due within the next six months Utility Options can offer analysis and advice on your situation. In some cases it may not be worth signing a contract, as fixed term costs may be higher than the suppliers standard variable rates. However, we can make the necessary calculations and confirm this. This will be the same for businesses who’s supplier has ceased to trade.
If your renewal is more than six months in to the future and you are worried that prices will continue to increase, we can find the best fixed rate contract prices available to secure your ongoing costs. Up to one year in advance of the renewal date.
Initial findings show that there is as much as a 30% difference in energy prices between a 1st October 2021 contract to an identical contract for 1st March 2022.
For those affected; it will be costly winter with regards to energy. However, businesses can make savings on their other utilities to offset some of that cost.
For more information on how Utility Options can help you click on the button below.
Additional Resources and Guidance