Business Energy Support
Discussion
I am struggling to get a completely clear idea of what will change re energy support for business in April.
Reports state electricity will be discount by up to £19.61 per MWh - So assuming a 'normal' business (not huge consumption like a steel producer etc) are we essentially to expect a discount 'of up to' 19.61p per KWh of use?
So with current fixed plans of around 55-60p KWh this would end up around 35-40p KWh - or am I missing something?
Reports state electricity will be discount by up to £19.61 per MWh - So assuming a 'normal' business (not huge consumption like a steel producer etc) are we essentially to expect a discount 'of up to' 19.61p per KWh of use?
So with current fixed plans of around 55-60p KWh this would end up around 35-40p KWh - or am I missing something?
Rick1.8t said:
I am struggling to get a completely clear idea of what will change re energy support for business in April.
Reports state electricity will be discount by up to £19.61 per MWh - So assuming a 'normal' business (not huge consumption like a steel producer etc) are we essentially to expect a discount 'of up to' 19.61p per KWh of use?
So with current fixed plans of around 55-60p KWh this would end up around 35-40p KWh - or am I missing something?
It's divide by 1000 not 100 to go from MWh to kWh, so the discount seems to be just 1.961p/kWh and that's an "upto" depending on your qualifying wholesale rate and the prevailing wholesale rate.Reports state electricity will be discount by up to £19.61 per MWh - So assuming a 'normal' business (not huge consumption like a steel producer etc) are we essentially to expect a discount 'of up to' 19.61p per KWh of use?
So with current fixed plans of around 55-60p KWh this would end up around 35-40p KWh - or am I missing something?
Mr Overheads said:
Rick1.8t said:
I am struggling to get a completely clear idea of what will change re energy support for business in April.
Reports state electricity will be discount by up to £19.61 per MWh - So assuming a 'normal' business (not huge consumption like a steel producer etc) are we essentially to expect a discount 'of up to' 19.61p per KWh of use?
So with current fixed plans of around 55-60p KWh this would end up around 35-40p KWh - or am I missing something?
It's divide by 1000 not 100 to go from MWh to kWh, so the discount seems to be just 1.961p/kWh and that's an "upto" depending on your qualifying wholesale rate and the prevailing wholesale rate.Reports state electricity will be discount by up to £19.61 per MWh - So assuming a 'normal' business (not huge consumption like a steel producer etc) are we essentially to expect a discount 'of up to' 19.61p per KWh of use?
So with current fixed plans of around 55-60p KWh this would end up around 35-40p KWh - or am I missing something?
Ok - A 2p reduction is realistically irrelevant when we are considering in the last 12 months the available KWh electricity supply has gone from 15-17p to 55-60p
Edited by Rick1.8t on Tuesday 10th January 13:46
It is a pretty low contribution however long term unit costs are all falling right now and every day too. Mild winter over central europe has meant most countries have replenished reserves and continued low temps mean low consumption. I am quietly optimistic that we should head back t more normal prices and the massively expensive government schemes can stop.
Tom8 said:
It is a pretty low contribution however long term unit costs are all falling right now and every day too. Mild winter over central europe has meant most countries have replenished reserves and continued low temps mean low consumption. I am quietly optimistic that we should head back t more normal prices and the massively expensive government schemes can stop.
Agree with that, of course a year of current prices may be too much for some very small but comparatively energy hungry business like pubs, shops with lots of freezer stock etc though.Basically from April 1 23 customers already getting a discount based on the old scheme will continue to get a discount but this will be capped at 1.96 /kWh electricity or 0.697p / kWh gas .
At the moment any prices customers are getting are likely to be below the threshold so they wont get anything. This will only change if the wholesale market ramps us significantly and even if this happens and they do qualify the discount will be subject to the cap of 1.96 and 0.697
At the moment any prices customers are getting are likely to be below the threshold so they wont get anything. This will only change if the wholesale market ramps us significantly and even if this happens and they do qualify the discount will be subject to the cap of 1.96 and 0.697
Mr Overheads said:
At the moment any prices customers are getting are likely to be below the threshold so they wont get anything. This will only change if the wholesale market ramps us significantly and even if this happens and they do qualify the discount will be subject to the cap of 1.96 and 0.697
Do you know what current business electricity rates would be for just over 20,000 kWh per annum? I would get a quote, but Jan is very busy and I can't do with fielding calls from the comparison companies right now.MaxFromage said:
Do you know what current business electricity rates would be for just over 20,000 kWh per annum? I would get a quote, but Jan is very busy and I can't do with fielding calls from the comparison companies right now.
It's a very wide range from 38p to 50p at the moment depending on supplier, contract start date, contract length, credit rating, industry sector etc.Mr Overheads said:
It's a very wide range from 38p to 50p at the moment depending on supplier, contract start date, contract length, credit rating, industry sector etc.
Gazing into your crystal ball, and pending no stupid developments by Putin, is there likely to be any significant market price changes up or down before March.Full disclosure - our electric contract is due 1 March.
Benny Saltstein said:
We're looking at renewals now - 38p ish is the best price we're getting across our meters all using between 30k-140k units. Mid-May we have to decide so deliberating over taking these rates or waiting,,,
Wholesale prices have fallen considerably.I spent 7yrs selling large business contracts, and if I was buying, I’d be waiting to see further falls.
Benny Saltstein said:
We're looking at renewals now - 38p ish is the best price we're getting across our meters all using between 30k-140k units. Mid-May we have to decide so deliberating over taking these rates or waiting,,,
That's good to hear - We fixed around 32p so nice to know when we come out of contract it wont be to a doubling of cost.interesting overview (simplyfying what's happening) over on the FT
https://www.ft.com/content/33e42179-ebf6-483d-b3c4...
(you may need to be a suscriber to access)
UK wholesale gas prices have already fallen below that trigger point, with contracts for delivery in late spring currently at about £63 per MWh, although some businesses are likely to have signed fixed cost contracts when prices were higher.
“There will be people who are getting a discount at the moment who won’t be getting one from April, and others will see a massive reduction in support,” said Martin Young, analyst at Investec
https://www.ft.com/content/33e42179-ebf6-483d-b3c4...
(you may need to be a suscriber to access)
UK wholesale gas prices have already fallen below that trigger point, with contracts for delivery in late spring currently at about £63 per MWh, although some businesses are likely to have signed fixed cost contracts when prices were higher.
“There will be people who are getting a discount at the moment who won’t be getting one from April, and others will see a massive reduction in support,” said Martin Young, analyst at Investec
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