Now is the optimum period to look to renew and take future positions on current and future business energy renewals…

During the lock down period, utility suppliers may offer your business part payment or deferral options on current and future utility bills, and it is important to endeavour to contact them to discuss your options. Do not cancel direct debits and bury your head in the sand, hoping for the best, as this can lead to late payment charges, increased unit rates and in some cases the termination of your existing contracts and the suppliers will enforce collection activity and/or begin the disconnection process (many remotely!). During this period of enforced shutdown, if your business does not have a smart meter, it is important to take regular monthly meter readings (where possible) to ensure suppliers do not over estimate costs for closed sites or sites running at minimal consumption putting yet further pressure on cashflow. Many water suppliers such as Castle Water, Wave and Everflow are currently offering temporary closure forms on their websites which allows businesses to notify them that sites are currently closed or in enforced shutdown and by completing the simple online form, they will not invoice businesses for this period, take direct debits or enforce outstanding balances.

As the world stays at home, forever cleaning hands and juggling work and family life, the price of oil and gas has plummeted due to decimated demand and overproduction. Coupled with very strong renewable output and lack of storage space there is unlikely to be a better time to take a future position on business utilities

On one side of the coin, the gas markets achieved the lowest wholesale costs seen for a decade, electric on the flip side is on the up, despite wholesale market prices declining – this is mainly due to impact of ever increasing Third Party Charges (TPC’s) which include operator costs, Government scheme costs such as Feed in Tariffs (FiT), Renewables Obligations (RO), Electricity Market Reform (EMR) and ‘green’ charges such as Climate Change Levy (CCL). To put that into perspective, TPC’s currently make up approximately 65% of total electricity costs and as we move towards a greener and carbon neutral UK, these will only increase year on year.

Now is the optimum period to look to renew and take future positions on current and future business energy renewals to help reduce the impact of the Covid 19 epidemic to your business cashflow, and provide cost certainty over the coming turbulent periods following the Brexit transitional period moving into 2021.

For help and advice or to find out how Fox Energy can assist your business, get in touch by calling 01233 884510 or email info@foxenergy.co.uk.