Gas price bonanza – don’t miss out!

There has been much speculation about the affect of the Covid19 lockdown on electricity and gas prices. The sudden drop in the use of energy in commercial premises has lead many to hope that prices will drop and give business owners some cheer in these very challenging times. 

Well, there is good news and there is bad news.

The Bad News

The past couple of weeks have seen a steady increase in electricity prices from all the main suppliers in the commercial energy market. Even though the wholesale price of electricity has not changed much there has been an increase in statutory charges within the overall price of electricity leading to prices moving up. 

On average prices are up 4-5% with an expectation for this to continue. So, if you are in contract with 12 months or less left until your renewal then it may be worth looking at securing your renewal prices now.

The Good News

As a complete contrast to electricity the price of gas has dropped dramatically with reductions of up to 30% being seen in the market. This price drop is primarily due to there being a large glut in supply as the lockdown and unseasonable warm weather has seen demand plummet. 

This means that for a short time there is a bit of a gas price bonanza and we would strongly recommend that you review your gas supplies and try and secure these low prices for your next renewal even if that is over 12 months away.