With the energy markets still rapidly on the rise, it was hoped that as we began the summer season, the expected warmer weather would assist in stabilising the markets…
Unfortunately, there is only further troubling news as gas and electric prices have continued to skyrocket with electric breaching £100/Megawatt and gas rapidly approaching £1.00/therm at the start of July, reaching the highest rates for well over a decade. A combination of dire reserves across much of the EU, the weather being below seasonal norm and no LNG (Liquefied Natural Gas) ships scheduled to arrive in UK ports because they continue to divert to Asia where higher prices can be achieved by the shippers, has all added to the strain on the energy markets. With the possibility of a colder winter and the extreme lack of reserves, there is a very real concern amongst the traders and suppliers that non-domestic or non-critical business services will be temporarily shut down later this year to slow the demand and prevent further strain on the nation’s gas supply. The big non-domestic users of gas, such as the laundries, could be the first affected and now is the time to investigate and prepare a potential failsafe for this eventuality. We urge all large non-domestic gas users to prepare for the worst.
As well as the unprecedented shortage and reflected gas prices, the implementation of the first stage of the TCR (Targeted Charging Review) on electric costs could not have come at a more inopportune time. Stage 1 affects the TNUoS (Transmission Network Use of System – the cost of getting power from the power source to the business) and the banding levels and costs have been released by Ofgem. As with any change, there are winners and losers depending on where you are in the country and how much power your business consumes, but predominantly there will be increases for most users. The bands are set by annual consumption for non-half hourly meters and by the agreed capacity for low and high voltage half hourly meters.
Ofgem have set out their final proposals regarding the regulation of energy brokers and suppliers, commissions and market transparency and fairness relating to microbusinesses (SME’s). Ofgem’s proposed changes, which will be introduced in stages towards the end of 2021, would mean that information on contract commissions is clearer for customers, would introduce a 14-day cooling-off period for new business energy contracts and abolish the need to serve a termination to existing energy contracts – currently between 120 and 30 days prior to a contract end date.
For help and advice and to find out how Fox Energy can support and assist your business with the upcoming changes under TCR, get in touch by calling 01233 884510 or email [email protected].