Business Energy Prices

[Geoffcapes]

mattybrown said:

My problem is our standing charge went from 70p per day to £7 per day, apparently worked out from 2018, when the building we are in didn’t exist and yet no one can help me to get this looked at because OfGem set this price?

How can a body paid for by the energy companies be allowed to set the standing charge?

There is no rhyme nor reason to standing charges.

They used to say it was x amount per kWh to cover the cost. But when prices went sky high, that cost miraculously went sky high as well. Which we all know is bullish*t.

The real reason for high standing charges is successive governments failure to ensure energy companies pay for infrastructure upgrades as the network grew.
It's also the same reason why renewable energy projects in this country are in such a mess as none of them can get connected to the grid.
Which in turn increases our reliance on foreign imports which increases our bills.

[Ham_and_Jam]

mattybrown said:

My problem is our standing charge went from 70p per day to £7 per day, apparently worked out from 2018, when the building we are in didn’t exist and yet no one can help me to get this looked at because OfGem set this price?

How can a body paid for by the energy companies be allowed to set the standing charge?

I’m not sure that’s right.

I’ve negotiated (moved companies) energy contracts many times and the SC is always different.

This year I moved from Octopus to BG lite as the Octopus put the standing charge up £3.20 / day, BG was 40p.

Just vote with your feet.

[mattybrown]

Ham_and_Jam said:

mattybrown said:

My problem is our standing charge went from 70p per day to £7 per day, apparently worked out from 2018, when the building we are in didn’t exist and yet no one can help me to get this looked at because OfGem set this price?

How can a body paid for by the energy companies be allowed to set the standing charge?

I’m not sure that’s right.

I’ve negotiated (moved companies) energy contracts many times and the SC is always different.

This year I moved from Octopus to BG lite as the Octopus put the standing charge up £3.20 / day, BG was 40p.

Just vote with your feet.

We have tried several suppliers as well as a broker and been told the same thing. Recently OfGem have changed the ways the standing charge is calculated so that low use or those who produce their own energy (generators or renewables) pay a ‘fair share’ of the supply costs.

[Ham_and_Jam]

mattybrown said:

We have tried several suppliers as well as a broker and been told the same thing. Recently OfGem have changed the ways the standing charge is calculated so that low use or those who produce their own energy (generators or renewables) pay a ‘fair share’ of the supply costs.

Are you low usage?

We are 30000kwh / year and renewed less than a month ago. We got several quotes and and the SC charges were wildly different but not attached specifically to our business.

Just wondering if you are very low usage you will be clobbered for the high SC.

[Geoffcapes]

One thing that hasn't been mentioned in your supplies is how you use your energy.

If you are high demand during working hours, then your standing charge will be higher than someone who has high demand at various points during the day or is high across the day.

That's why suppliers (for HH meters) need your energy profile.

An office who have the same consumption as a factory will have a different profile to them. In an office there spikes in usage will be 8-9 when everyone turns their pc on, lunchtime and will drop off a cliff at 5-6pm.

A manufacturer will have a spike at 8-9am and then a steady profile until closing.

[mattybrown]

Ham_and_Jam said:

Are you low usage?

We are 30000kwh / year and renewed less than a month ago. We got several quotes and and the SC charges were wildly different but not attached specifically to our business.

Just wondering if you are very low usage you will be clobbered for the high SC.

I think you are right we are a 6000Sqft office only finished about two years ago so its all LED lighting, aircon for heating and cooling no real heavy use apart from a Ziptap. last years annual use is only 37,404 kWh...

Can't do right by trying to use less energy.

We are also on a 'half hourly' meter what ever that means but it has been used to reject us as a customer.

[Geoffcapes]

mattybrown said:

I think you are right we are a 6000Sqft office only finished about two years ago so its all LED lighting, aircon for heating and cooling no real heavy use apart from a Ziptap. last years annual use is only 37,404 kWh...

Can't do right by trying to use less energy.

We are also on a 'half hourly' meter what ever that means but it has been used to reject us as a customer.

If you're on a Half Hourly meter, it should be easier for you to get a quote. And a better rate.

DM me if you want me to get you a quote for your supply.
Yes it's not massive but it's HH, so easy enough to place.

[voicey]

So what's the current thinking?! My contract runs out on 20th June - currently on 30p standing charge and 17p per 33.kWh (6,000 kWh pa). Just compared some prices on Energylinx and got the following from British Gas Lite:

1 year fix: 40p SC, 33.28 per kWh
2 year fix: 42p SC, 33.39 per kWh
3 year fix: 45p SC, 33.53 per kWh

Just on that quote, it looks like the forward curve is slight steepening. Any thoughts on what prices will be like a month or two from here? Worth fixing for a year and gambling prices will be lower in 12 months?

Due to the low usage it'll only double my bill from about £100pm so not a huge impact for the business at all but if I can get the price low enough I'll get an electric car (which will use about another 6,000 kWh based on my mileage)

Cheers...

[Geoffcapes]

voicey said:

So what's the current thinking?! My contract runs out on 20th June - currently on 30p standing charge and 17p per 33.kWh (6,000 kWh pa). Just compared some prices on Energylinx and got the following from British Gas Lite:

1 year fix: 40p SC, 33.28 per kWh
2 year fix: 42p SC, 33.39 per kWh
3 year fix: 45p SC, 33.53 per kWh

Just on that quote, it looks like the forward curve is slight steepening. Any thoughts on what prices will be like a month or two from here? Worth fixing for a year and gambling prices will be lower in 12 months?

Due to the low usage it'll only double my bill from about £100pm so not a huge impact for the business at all but if I can get the price low enough I'll get an electric car (which will use about another 6,000 kWh based on my mileage)

Cheers...

Aldous, hope all is well.

Using any commercial energy 'comparison site' isn't actually worthwhile. They're data collection sites.
For where you are and your consumption you should be looking at circa 30p as I assume you're on a Non-Half Hourly Meter. If you are on a Half Hourly Meter give me a call (if you still have my number) and I will get you a contract for way less than what you have been quoted

Don't fix for more than a year as prices are falling.


Mark

[Cupid-stunt]

Geoffcapes said:

Aldous, hope all is well.

Using any commercial energy 'comparison site' isn't actually worthwhile. They're data collection sites.
For where you are and your consumption you should be looking at circa 30p as I assume you're on a Non-Half Hourly Meter. If you are on a Half Hourly Meter give me a call (if you still have my number) and I will get you a contract for way less than what you have been quoted

Don't fix for more than a year as prices are falling.


Mark

I would challenge that.
Prices on the near end are falling and that makes sense, better information on demand and also supply.
Further out prices are increasing as the shortfall of gas from Nordstream is not fully contracted.
A major component of prices is where LNG will go and China demand is a massive swing factor.
China economy is improving and they will be pushing prices up.

What that means is that continental Europe is seeing price increases in 2024/2025.

I would seriously contemplate locking in for 2024/25 at current levels if they work for you.

Energy markets since 1998 and currently buying energy across Europe running into TWh

[Geoffcapes]

Cupid-stunt said:

I would challenge that.
Prices on the near end are falling and that makes sense, better information on demand and also supply.
Further out prices are increasing as the shortfall of gas from Nordstream is not fully contracted.
A major component of prices is where LNG will go and China demand is a massive swing factor.
China economy is improving and they will be pushing prices up.

What that means is that continental Europe is seeing price increases in 2024/2025.

I would seriously contemplate locking in for 2024/25 at current levels if they work for you.

Energy markets since 1998 and currently buying energy across Europe running into TWh

Forward price curves tell a different story.

[Cupid-stunt]

Geoffcapes said:

Cupid-stunt said:

I would challenge that.
Prices on the near end are falling and that makes sense, better information on demand and also supply.
Further out prices are increasing as the shortfall of gas from Nordstream is not fully contracted.
A major component of prices is where LNG will go and China demand is a massive swing factor.
China economy is improving and they will be pushing prices up.

What that means is that continental Europe is seeing price increases in 2024/2025.

I would seriously contemplate locking in for 2024/25 at current levels if they work for you.

Energy markets since 1998 and currently buying energy across Europe running into TWh

Forward price curves tell a different story.

Hahah

Love that they are still using the template that I created.
Are they showing the annual graphs for last 12m as well….¿

As a fixed price customer it is difficult to take advantage of lower near end prices.
I only worked with large industrials that were on flex contracts. Are they available for smaller users¿
If so I’d think that is a better play.

[Geoffcapes]

Cupid-stunt said:

Hahah

Love that they are still using the template that I created.
Are they showing the annual graphs for last 12m as well….¿

As a fixed price customer it is difficult to take advantage of lower near end prices.
I only worked with large industrials that were on flex contracts. Are they available for smaller users¿
If so I’d think that is a better play.

Flex or managed funds are only available for large contracts.

If they were available for smaller contracts I would put every one of my clients in them at the moment.