As you’re no doubt aware, high global gas prices - up four-fold from the beginning of the year - have led to historically high electricity and gas prices in the UK.
This has significantly impacted energy suppliers who have not hedged (effectively purchased energy to minimise the impact of high volatility) their customer’s energy requirements, with many struggling and some even going out of business.
Though the domestic market has previously seen the biggest impact of this crisis, last week it was announced that business supplier CNG was having to close. It is likely that there will be more business energy supplier failures to come over the winter.
While the customers of failing suppliers can be reassured that their energy supply will not be interrupted, the price they pay with their new supplier is almost certainly going to be higher.
Domestic customers are protected by a price cap, but business customers are not, so those affected by the close of their supplier are likely to face a significant increase in their bills. The same impact will also apply for customers whose current supply contract is coming to an end.
What can a business do to reduce the potential impact on their bills through the winter - and beyond?
If they are approaching the end of their contract, they should research their next supplier carefully. While smaller suppliers may offer cheaper introductory rates, these may not be sustainable. Choosing a large, established supplier with a track record of supplying businesses – and navigating volatile energy markets - is more important than ever.
For extra reassurance, look for those that are part of a broader energy company and have a strong (and long-running) presence on customer review sites such as Trustpilot.
At this time of year, when usage is traditionally higher, saving energy is also vital and will have a direct impact on bills. There are many simple ways to do this, from identifying where energy is being used and replacing inefficient equipment to nominating an ‘energy champion’ In the business to keep an eye on consumption and educate other staff.
Read Smart Energy GB's ‘top five’ list of energy saving tips for businesses here.
A note for our customers:
At TotalEnergies Gas & Power we’re continuing to focus on providing hassle-free energy - so you can get on with running your business.
We'd also like to reassure you that despite this market volatility, we are here for the long term in supporting your energy needs.
Thank you for choosing us to power your business!