The government have recently announced a new statement as to why the UK is “almost Uniquely” exposed to higher energy prices.
This is due to gas prices being so high globally, driving up electricity prices as 40% of UK electricity comes from gas-fired power stations. The government are currently working on schemes to reduce the price of electricity. Many people think that the key to the UK’s security is going to be to draw energy from a range of sources and reducing energy demand from households and businesses.
A lot of environmentalists have said that although the government is focusing on certain renewables such as nuclear and the size of the well C plant, this is going to take a long time to produce energy that will make a difference in the overall energy network.
The government should be focusing on types of renewable energy that are going to have a quicker turnaround and help homes and businesses become more energy efficient.
Due to all these factors and possibly poor decisions in government the UK is now in a position of having no security when it comes to energy, which leads prices to be extremely volatile.
Although there has been a recent drop in energy prices that is only due to unseasonably warm weather over the past couple of months globally. If the temperature begins to drop further which it most likely will through the rest of winter, gas prices will begin to shoot back up again.
Should my business be on a fixed energy contract?
With the current position of the UK energy market, it would most likely be best for your business to ensure your gas contracts are fixed before the government support for business energy bills comes to an end.
Wholesale energy prices are expected to rise by 50% in 2023. This means if you are on a deemed or variable contract you could be paying a significantly larger bill in just a few months.
However, each business has different circumstances so it would be best to speak to an energy consultant before deciding. To get started with your energy bills why not contact us today an expert energy consultant will advise you on what to do with your business energy bills.
Is my business going to be exposed to higher energy prices?
As we mentioned earlier, wholesale energy prices are expected to go by up 50% in 2023. This means if you wait until next year to begin looking for energy prices then you are likely to be paying a lot more.
With the end of the Energy Bill Relief Scheme next March, your business could find itself exposed to much higher energy prices
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.
