The energy landscape for businesses shifted dramatically in 2023. While volatility has subsided in 2024, navigating the world of business energy can still be tricky. This guide will equip you with the knowledge to save money and make informed decisions about your company's energy strategy.
Energy prices in 2024
Since the beginning of the year research suggests business energy costs are on a downward trajectory in 2024. This is primarily due to a decrease in wholesale energy prices. This is a reduction in the unit price of energy also, standing charges remain high and have been predicted to rise further throughout the year.
However, these prices are not expected to last much longer. The Energy Bills Discount Scheme (EBDS) that provided relief in 2023 expires in March 2024, and there is no replacement. Additionally, prices remain significantly higher than pre-2022 levels.
Are business energy prices going to rise?
The energy market is still very volatile in the UK. This means that even though prices may have dropped slightly they remain unpredictable. The UK is still reliant on imports, therefore geopolitical issues that affect the global energy market also push UK prices up.
Businesses need to be aware of market fluctuations that could cost you more money if you are not careful.
The end of business energy support
Your business energy bills could also be affected by the end of the Energy Bill Discount Scheme (EBDS). The EBDS was introduced to replace the Energy Bill Relief Scheme on April 1st, 2023. However, this support ends on the 31st of March 2024 which means businesses do not have anything to fall back on if prices rise again.
Find out more about the EBDS.
Taking Control of Your Energy Bill
To make sure that your business does not suffer with high energy prices throughout the year, here are some key actions:
- Shop Around: Do not be afraid to compare quotes from different suppliers. The market is competitive, and you might find a better deal than your current contract offers. Why not get a quote from us today we will show you offers from lots of different suppliers and suggest the best price and contract term for you.
- Fix Your Rates: With prices still relatively low, locking in a fixed-rate contract for 2-3 years can provide budget certainty. This protects you from potential price hikes in the future.
- Become Energy Efficient: Investing in energy-saving measures like LED lighting and smart thermostats can yield significant cost reductions over time. Other energy efficient infrastructure such as solar panels or voltage optimisation can also save your business thousands.
Looking Ahead: Be Prepared for Fluctuations
While forecasts predict a decrease, the energy market remains unpredictable. Here are some ways to prepare for potential fluctuations:
- Monitor Your Usage: Keeping a close eye on your energy consumption allows you to identify areas for improvement and adjust your habits accordingly.
- Embrace Flexibility: Consider a supplier that offers flexible contracts allowing you to adjust your energy use based on seasonal variations.
- Stay Informed: Keep yourself updated on industry trends and government policies that may impact energy prices.
By following these tips, you can take charge of your business energy use and navigate the dynamic energy landscape in 2024. Remember, a little planning can go a long way in saving your business money and ensuring a sustainable future.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
