As the latest American Civil War for the White House reached a conclusion (maybe…), the energy markets reacted cautiously amidst the uncertainty of a future ‘special relationship’ between the UK and USA over key points such as Brexit and a future trade deal, causing prices to increase.
Energy prices have also begun to lift with the colder temperatures forecast to arrive from mid-November and sit above the seasonal norm for this time of year, assisted by additional home working contributing to higher residential consumption.
Businesses may face a one-off Renewables Obligation (RO) Charge in December as several UK suppliers ceased trading between April 2018 – March 2019, resulting in those companies failing to meet their RO contribution for this period. This shortfall will now to be paid for by all active suppliers as enforced by the regulators Ofgem. These additional costs are generally recovered from business energy customers on a Flex or pass through contract in the form of a one off charge, however many suppliers (such as SSE) have changed rates on non-fixed contracts in an attempt to recover their increased RO contribution. If you have moved supplier over or since this period, you may even receive a bill from your previous supplier!
In positive news, the UK’s wind energy industry is set for continued growth despite the Covid-19 pandemic, with forecasts that this market will grow at a rate of 8.5% over the coming 4 years which is a 54% increase in wind power installations compared to 2019. This can only help with the UK’s commitment to tackle climate change and reduce carbon emissions.
For help and advice or to find out how Fox Energy can assist your business, get in touch by calling 01233 884510 or email [email protected].