Commercial gas and electricity for 2022, stupid prices
Commercial gas and electricity for 2022, stupid prices
Author
Discussion

BGARK

Original Poster:

5,624 posts

262 months

Tuesday 7th December 2021
quotequote all
Our electricity supplier contract ends soon.

What are you guys paying per kWh for electricity?

We have been told our rate will go up 93% next year, putting us around £20k per annum for just electric costs.

We also pay a stupid amount for gas...




Mr Overheads

2,533 posts

192 months

Tuesday 7th December 2021
quotequote all
BGARK said:
Our electricity supplier contract ends soon.

What are you guys paying per kWh for electricity?

We have been told our rate will go up 93% next year, putting us around £20k per annum for just electric costs.

We also pay a stupid amount for gas...
Send me the details by PM. Are you using a broker, many are using the opportunity of you expecting high prices to bump up their commission too.

Mr Overheads

2,533 posts

192 months

Wednesday 8th December 2021
quotequote all
Got your pm, have replied.

BGARK

Original Poster:

5,624 posts

262 months

Wednesday 8th December 2021
quotequote all
For the benefit of others.

We are currently paying 14.32p per unit or kWh (for electricity)

Our old supplier is increasing rates on 1st Jan to 28.14 per kWh

A 94% increase.

Might be worth checking your contracts!

Ham_and_Jam

3,139 posts

113 months

Wednesday 8th December 2021
quotequote all
BGARK said:
For the benefit of others.

We are currently paying 14.32p per unit or kWh (for electricity)

Our old supplier is increasing rates on 1st Jan to 28.14 per kWh

A 94% increase.

Might be worth checking your contracts!
I would be interested where you end up. Ours is due end of February. Not looking forward to the rate increase.

mcflurry

9,179 posts

269 months

Wednesday 8th December 2021
quotequote all
Whilst it's not directly comparable, my domestic rate went from 12.318p/unit with Symbio to 22.71p/unit when EonNext took over as SoLR frown

Sochaux

144 posts

90 months

Wednesday 8th December 2021
quotequote all
I’m looking to renew our electricity contract, we are currently with BG Lite and the prices I’m getting are insane. Everyone is pushing 36 months contracts at me too, not sure what to do!

Chuffedmonkey

967 posts

122 months

Thursday 9th December 2021
quotequote all
We had to renew in November and the fixed rates where 2 to 3 years at considerable increases. We decided that going onto the standard BG variable with no fixed length was the best option. Hopefully it was the right choice in the current climate but we will see.

lastofthev8s

206 posts

106 months

Thursday 9th December 2021
quotequote all
Our contracts are due up at the end of December with the added bonus of the existing supplier (Opus) deciding to pull out of the market to Housing Associations so a change of supplier was definitely going to happen this time after 4 years with them (annual contracts tendered out and always came back as the cheapest).

Have seen a 75-80% increase in electricity costs from January with gas much higher, 200% in some cases.

Can’t recall the rates off hand, but recall some ridiculous increases in standing charges e.g. from £25 per month to £300 per month!


Edited by lastofthev8s on Thursday 9th December 19:45

Ham_and_Jam

3,139 posts

113 months

Friday 10th December 2021
quotequote all
Chuffedmonkey said:
We had to renew in November and the fixed rates where 2 to 3 years at considerable increases. We decided that going onto the standard BG variable with no fixed length was the best option. Hopefully it was the right choice in the current climate but we will see.
I’m also considering variable rates. First time ever in 17 years, but don’t want to get stuck with ridiculously high rates for 2-3 years if the market corrects itself in a few months.

Mr Overheads

2,533 posts

192 months

Monday 13th December 2021
quotequote all
Sochaux said:
I’m looking to renew our electricity contract, we are currently with BG Lite and the prices I’m getting are insane. Everyone is pushing 36 months contracts at me too, not sure what to do!
Send us a pm we'll give you some advice on your specific situation.

Mr Overheads

2,533 posts

192 months

Monday 13th December 2021
quotequote all
Ham_and_Jam said:
Chuffedmonkey said:
We had to renew in November and the fixed rates where 2 to 3 years at considerable increases. We decided that going onto the standard BG variable with no fixed length was the best option. Hopefully it was the right choice in the current climate but we will see.
I’m also considering variable rates. First time ever in 17 years, but don’t want to get stuck with ridiculously high rates for 2-3 years if the market corrects itself in a few months.
1 year max is the way to go we think depending on your situation and number of sites you have etc. If just one site then definitely short term contracts.

Brokers are only pushing 2 or 3 year because it gives them a chance to lock in hefty commissions without people questioning it.

BGARK

Original Poster:

5,624 posts

262 months

Tuesday 18th January 2022
quotequote all
Update - Approx:

27p / Unit Electricity

9p / Unit Gas

Fixed for 3 years, seems to be the best we have found so far.


Simpo Two

89,407 posts

281 months

Tuesday 18th January 2022
quotequote all
Mr Overheads said:
Brokers are only pushing 2 or 3 year because it gives them a chance to lock in hefty commissions without people questioning it.
As if prices aren't going to be high enough, there are commissions as well? The energy industry is truly in a mess.

RicksAlfas

14,102 posts

260 months

Wednesday 19th January 2022
quotequote all
Mr Overheads said:
1 year max is the way to go we think depending on your situation and number of sites you have etc. If just one site then definitely short term contracts.

Brokers are only pushing 2 or 3 year because it gives them a chance to lock in hefty commissions without people questioning it.
Our broker is really pushing two years with us. His reasoning being they don't see any let up in prices for the next couple of years.
If we go for 12 months it's a 100% price rise, 24 months is 82%!

Mr Overheads

2,533 posts

192 months

Wednesday 19th January 2022
quotequote all
RicksAlfas said:
Mr Overheads said:
1 year max is the way to go we think depending on your situation and number of sites you have etc. If just one site then definitely short term contracts.

Brokers are only pushing 2 or 3 year because it gives them a chance to lock in hefty commissions without people questioning it.
Our broker is really pushing two years with us. His reasoning being they don't see any let up in prices for the next couple of years.
If we go for 12 months it's a 100% price rise, 24 months is 82%!
They won't stabilise until the threat of Russia invading Ukraine is over, then Nordstream2 will get approval and plenty of gas will flow to Europe.

If your Bill now is £100
Your new bill on 2yr is £182 per year
So on 1 year it's £200 for year 1, so as long as it come sin lower than £164 in Year 2 then the 1 year contract wins.

Brokers will always push longer because it locks in their commission for longer. Ask them how much commission they've added on the options presented. We can always offer alternative quotes.

EDIT: Prices for example have fallen 0.44p/kWh just this morning for the Winter 22 Contract period. I can only see prices going down from here, with maybe the odd spike. [Consumer prices will of course rocket in April when the domestic energy price cap is increased to as yet unknown level]

Edited by Mr Overheads on Wednesday 19th January 13:22


Edited by Mr Overheads on Wednesday 19th January 13:22