How to boost your business and save thousands on energy costs
Business energy price rises could be set to occur in the coming months, hitting smaller businesses particularly hard. It’s vital to understand the reasons behind the increases so you can make sure your business is saving as much money as possible.
It’s been a tough year for businesses everywhere and the effects of Covid-19 have been catastrophic for many, but factors like the ongoing lockdowns, Brexit and unseasonable cold weather, could all contribute a rise in energy prices, starting from 1st April.
Finding the right energy deal sooner rather than later will save you money in the long run. We can secure you a contract up to 11 months before your current one ends, so get a quote now to protect yourself from price rises.
Get a quote online or call directly on 0800 068 5222
Why will energy prices rise?
There are a few reasons which are resulting in the energy cost increase, some of these are:
- Wholesale costs have increased – The global energy market has started to recover from the dip in demand caused by the pandemic. But as this demand has started to increase again, gas prices have shot up. For the wholesale electricity market, there has been a less predictable amount of availablepower supplies compared to last year, which, when coupled with higher gas prices, has led to an increase in the price of electricity.
- Supplier costs have increased – Higher electricity distribution costs have caused a network cost increase. Suppliers have also been hit with an increase in other policy costs, most notably the cost of the Renewable Obligation (RO) This is a levy placed on all licensed electricity suppliers to encourage them to source a proportion of the electricity they supply from renewable energy sources.
- Regulator adjustments – Ofgem, the energy regulator has started a Third Party Cost Review[JW1] Which could lead ot a change in the way charges are calculated for customers. There has also been included in bills an adjustment for any additional costs suppliers have faced during the pandemic, specifically ‘bad debts’ which have been incurred as a growing number of customers haven’t been able to pay their energy bills.
- Brexit uncertainty – The UK imports around 40% of its gas from European pipelines, and about 6% of its electricity is generated in France, Holland and Ireland. Now the UK is no longer part of the EU, this could lead to a further increase in transportation costs
How to cut your business energy bills
Finding a new energy contract is a quick and easy way to save money on your business energy bills.
Beat the business energy price rises in three simple steps:
- Enter your details – Give us your business address and we’ll use smart data to accurately find and understand your energy usage.
- Get your quotes – One of our UK-based tech enabled experts will compare quotes across our vetted panel of UK suppliers and present your results back in a short call.
- Leave the rest to us – we will proactively search our panel at each renewal to ensure you never overpay for energy again.
Get a quote or call directly on 0800 068 5222
*Of Bionic customers who made a saving on a three-year business energy contract between January 2020 and May 2020, the average amount saved was £1,305.