Electricity and gas renewal prices in 2018 – important information for business owners

Published by admin at August 15, 2018

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If your business energy contract is due for renewal shortly then you need to be aware of the following: –

Wholesale electricity prices have increased by more than 35% in the last 12 months. These prices show no sign of falling in the short to medium term, so if your contract is due for renewal in the next 6 months we would urge you to look at securing renewal prices as soon as possible. (The below graph shows the wholesale gas and electricity price movements since the beginning of 2017.)

In addition, non-commodity costs such as Government levies continue to rise. Uncertainty around issues such as oil prices don’t help the situation and Energy Suppliers are factoring-in further increases in the future. These are reflected in your business energy costs.

If you currently work with an energy consultant / broker and they are pushing you to renew with your current Supplier be aware that this MAY not be the best deal for you.

Here at Pickwick Cross we have recently been working with a range of Clients whose energy contracts are due for renewal over the next 6 months. We NEVER guarantee to save our Clients money based on their current annual expenditure. However, we are regularly saving them money compared with the prices offered by their current brokers / suppliers. Some examples from the past 2 months:

Bakery

Annual spend = £635,000

Contract end date – 30/09/18

Their current broker’s best offer = £775,200 (increase of 22%)

Our price = £736,600 (increase of 16%)

Quarry

Annual spend = £94,000

Contract end date – 30/09/18

Their current broker’s best offer = £112,000 (increase of 19%)

Our price = £100,590 (increase of 7%)

Distillery

Annual spend = £430,000

Contract end date – 25/08/18

Their current supplier’s best renewal offer = £515,000 (increase of 20%)

Our price = £486,000 (increase of 13%)

So if your business energy contract is due for renewal shortly why not contact us to see if we can beat the offer from your current broker or supplier?