Business Energy Prices
Discussion
I've been a long time lurker but felt it was about time to sign up to Pistonheads instead of just browsing for hours!
I own and run a small business that uses approximately 12000-14000 kwh of electric per year, no gas on the premises.
I'm currently in a contract that is fixed until end of September 2023 at 19.437p per kwh and 33.660p per day standing charge.
Energy prices have been absurdly high recently but have noticed new deals available that are not so expensive, one example would be tied in until May 2026 with my provider at:
32.360p per kwh and 58.950p per day standing charge
My question really is how do people predict the energy market to change in the next 6 months? Difficult question to answer without a crystal ball but will prices increase massively again like they did not too many months back?
My thought process is as follows:
Do I stay on my current deal on the lower rates and then see what's on offer in September.
Or
Do I fix into a more expensive contract now, knowing that I'll be paying more than I would have been on the existing contract for the next 6 months, but have the peace of mind that my rates are tied in for 39 months which would see me out until the end of my current business lease?
My concern is if I leave it, will rates shoot back up again to say 55p per kwh and 100p per day standing charge.
Look forward to hearing your thoughts!
I own and run a small business that uses approximately 12000-14000 kwh of electric per year, no gas on the premises.
I'm currently in a contract that is fixed until end of September 2023 at 19.437p per kwh and 33.660p per day standing charge.
Energy prices have been absurdly high recently but have noticed new deals available that are not so expensive, one example would be tied in until May 2026 with my provider at:
32.360p per kwh and 58.950p per day standing charge
My question really is how do people predict the energy market to change in the next 6 months? Difficult question to answer without a crystal ball but will prices increase massively again like they did not too many months back?
My thought process is as follows:
Do I stay on my current deal on the lower rates and then see what's on offer in September.
Or
Do I fix into a more expensive contract now, knowing that I'll be paying more than I would have been on the existing contract for the next 6 months, but have the peace of mind that my rates are tied in for 39 months which would see me out until the end of my current business lease?
My concern is if I leave it, will rates shoot back up again to say 55p per kwh and 100p per day standing charge.
Look forward to hearing your thoughts!
Ham_and_Jam said:
Wholesale energy prices are coming down, so with no dramatic external influences they should filter through later this year.
However as we have all found out, external influences have a funny way of popping up and causing chaos! So whether it’s Putin or some other nutter, it could well cause prices to spike.
Personally I wouldn’t lock into these prices for 3 years, my preference would be 1-2 years and see how the market pans out. It is always a gamble though.
Can I ask who your existing supplier is? Our electric is due 1 March, so I am actively looking. I’m on a day / night meter around 30000 kwh / year and the current renewal is slightly better rates (34p / 28p) but £3.60 daily standing charge.
I have a feeling it’ll probably work out similar as they just tend to skin the prices a different way, but wouldn’t mind getting a quote to compare if you don’t mind sharing.
Scottish Power. I've spoken to my current broker and they have advised to stay on the current contract until end of September 23. Energy prices should continue to fall as long as another disaster doesn't strike!However as we have all found out, external influences have a funny way of popping up and causing chaos! So whether it’s Putin or some other nutter, it could well cause prices to spike.
Personally I wouldn’t lock into these prices for 3 years, my preference would be 1-2 years and see how the market pans out. It is always a gamble though.
Can I ask who your existing supplier is? Our electric is due 1 March, so I am actively looking. I’m on a day / night meter around 30000 kwh / year and the current renewal is slightly better rates (34p / 28p) but £3.60 daily standing charge.
I have a feeling it’ll probably work out similar as they just tend to skin the prices a different way, but wouldn’t mind getting a quote to compare if you don’t mind sharing.
My fiancee is needing to renew on her premises so currently thinking of just locking into a 1 year deal.
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