Business Energy Prices

Business Energy Prices

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JagXJGuy

Original Poster:

20 posts

21 months

Tuesday 7th February 2023
quotequote all
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!


Ham_and_Jam

2,567 posts

104 months

Tuesday 7th February 2023
quotequote all
JagXJGuy said:
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!
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.

robdcfc

523 posts

165 months

Wednesday 8th February 2023
quotequote all
Just renewed mine at 33.82kwh and 40p SC for 12 months with British gas lite, via a broker rather than direct as this was cheaper than direct with BGL.

I use around 12000kwh a year so similar to yourself.

Benny Saltstein

670 posts

220 months

Thursday 9th February 2023
quotequote all
I've just had a very similar quote on BG Lite via a broker. What surprises me is that a month ago the standing charges were 10 times higher!

We've got 5 meters renewing mid May at around 400000kwh so the standing charge is a bit irrelevent but I still don't understand the huge difference.

Louis Balfour

27,695 posts

229 months

Thursday 9th February 2023
quotequote all
Benny Saltstein said:
I've just had a very similar quote on BG Lite via a broker. .
If the broker is B****c, run a mile. If it's anyone you know to be good please PM me the details.

Ham_and_Jam

2,567 posts

104 months

Thursday 9th February 2023
quotequote all
Benny Saltstein said:
I've just had a very similar quote on BG Lite via a broker. What surprises me is that a month ago the standing charges were 10 times higher!

We've got 5 meters renewing mid May at around 400000kwh so the standing charge is a bit irrelevent but I still don't understand the huge difference.
Care to share the broker details pls. PM me if you don’t want to post smile

Mr Overheads

2,489 posts

183 months

Thursday 9th February 2023
quotequote all
Benny Saltstein said:
I've just had a very similar quote on BG Lite via a broker. What surprises me is that a month ago the standing charges were 10 times higher!

We've got 5 meters renewing mid May at around 400000kwh so the standing charge is a bit irrelevent but I still don't understand the huge difference.
We would be happy to help on brokerage at that level. With 3 months to go and 5 meters, you have the luxury of spreading your risk in the market e.g.
Renew 1 meter now for 1 year
Renew 2 meters in mid March for 6 months
Renew 2 meters in mid April for 1 year or even 2 if rates do continue to fall.

That way you get a small spread of market prices at the start of the contract, but you really spread your contract end dates, so you never have to gamble all your contracts at a single point in the market again.

Ham_and_Jam

2,567 posts

104 months

Thursday 9th February 2023
quotequote all
Mr Overheads said:
We would be happy to help on brokerage at that level. With 3 months to go and 5 meters, you have the luxury of spreading your risk in the market e.g.
Renew 1 meter now for 1 year
Renew 2 meters in mid March for 6 months
Renew 2 meters in mid April for 1 year or even 2 if rates do continue to fall.

That way you get a small spread of market prices at the start of the contract, but you really spread your contract end dates, so you never have to gamble all your contracts at a single point in the market again.
Not happy to help me?

Mr Overheads

2,489 posts

183 months

Friday 10th February 2023
quotequote all
Ham_and_Jam said:
Mr Overheads said:
We would be happy to help on brokerage at that level. With 3 months to go and 5 meters, you have the luxury of spreading your risk in the market e.g.
Renew 1 meter now for 1 year
Renew 2 meters in mid March for 6 months
Renew 2 meters in mid April for 1 year or even 2 if rates do continue to fall.

That way you get a small spread of market prices at the start of the contract, but you really spread your contract end dates, so you never have to gamble all your contracts at a single point in the market again.
Not happy to help me?
Your consumption is very small, so we would have to put on at least 2p/kWh to make it worth running the manual tender, processing the results from all suppliers etc. We've done lower commissions for PH people before at your sort of level, but then they jsut take our price, go direct to the supplier and we've wasted half a days work for no return. At higher consumptions and multiple meters people in general aprpeciate the consultancy and advice as much as they do cheapest price.

Last time I ran a tender for a PH'er, after asking us to refresh the prices multiple times eventually went direct with a supplier that was £50 per year cheaper on only about £2k spend. We're a low volume high quality consultancy, not a high volume broker. The latter will go to a limited range of suppliers, and will lock in as many meters as they can for as long as they can on one contract end date to reduce their work next time around.

Ham_and_Jam

2,567 posts

104 months

Friday 10th February 2023
quotequote all
Mr Overheads said:
Your consumption is very small, so we would have to put on at least 2p/kWh to make it worth running the manual tender, processing the results from all suppliers etc. We've done lower commissions for PH people before at your sort of level, but then they jsut take our price, go direct to the supplier and we've wasted half a days work for no return. At higher consumptions and multiple meters people in general aprpeciate the consultancy and advice as much as they do cheapest price.

Last time I ran a tender for a PH'er, after asking us to refresh the prices multiple times eventually went direct with a supplier that was £50 per year cheaper on only about £2k spend. We're a low volume high quality consultancy, not a high volume broker. The latter will go to a limited range of suppliers, and will lock in as many meters as they can for as long as they can on one contract end date to reduce their work next time around.
Fair enough, I know 30000kwh isn’t going to set the world on fire but thought it might be worth a shout. We certainly don’t mess people about and value relationships with all our suppliers.

Anyhow, just secured the BG deal as discussed earlier as I didn’t want to leave it any longer in case we dropped onto out of contract prices.

JagXJGuy

Original Poster:

20 posts

21 months

Friday 10th February 2023
quotequote all
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!

My fiancee is needing to renew on her premises so currently thinking of just locking into a 1 year deal.

7 CUU

915 posts

201 months

Tuesday 28th March 2023
quotequote all
Is there any help after the 31st March ? and if so at what level, all quiet out there regarding EBRS (google search) Budget only spoke about continued help for homes.

Geoffcapes

828 posts

171 months

Tuesday 28th March 2023
quotequote all
Ham_and_Jam said:
Fair enough, I know 30000kwh isn’t going to set the world on fire but thought it might be worth a shout. We certainly don’t mess people about and value relationships with all our suppliers.

Anyhow, just secured the BG deal as discussed earlier as I didn’t want to leave it any longer in case we dropped onto out of contract prices.
I also do commercial energy procurement, but have lower overheads than most and take lower fees (certainly less than 2p kWh, not actually sure if you can get away with that).
As long as you're on a Half Hourly meter that's fine.
Can also look at non Half Hourly meter's in some cases as long as the supply is big enough.

Feel free to PM me and I'd be happy to help.

One thing to also consider, you can procure your energy up to 5 years in advance. You don't have to wait until just before your renewal.

Strocky

2,715 posts

120 months

Tuesday 28th March 2023
quotequote all
We went with Octopus direct (120,000 KwH electric) after some near misses with the pretend comparison website cowboys who demanded to talk turkey there and then

Special shout out to the desk jockey that snidely dismissed our director saying they WILL talk to him right now as going down the broker route was the only way business users can deal in the market

The joys of the IP block button

trolley2020

8 posts

213 months

Tuesday 28th March 2023
quotequote all
Anyone else struggling to get prices with a half hourly meter?

I've called round quite a few of the suppliers and only gettign quotes from BG, E.On next many of the others just aren't giving out quotes.

We use around 60,000kWh per year and are out of contract with not fully understanding the new support I'm keen to get a contract in place.

Geoffcapes

828 posts

171 months

Tuesday 28th March 2023
quotequote all
trolley2020 said:
Anyone else struggling to get prices with a half hourly meter?

I've called round quite a few of the suppliers and only gettign quotes from BG, E.On next many of the others just aren't giving out quotes.

We use around 60,000kWh per year and are out of contract with not fully understanding the new support I'm keen to get a contract in place.
PM me and I'll be happy to give you a some advice.

Geoffcapes

828 posts

171 months

Tuesday 28th March 2023
quotequote all
Strocky said:
We went with Octopus direct (120,000 KwH electric) after some near misses with the pretend comparison website cowboys who demanded to talk turkey there and then

Special shout out to the desk jockey that snidely dismissed our director saying they WILL talk to him right now as going down the broker route was the only way business users can deal in the market

The joys of the IP block button
Because of the nature of business supplies, going on a comparison website is basically a data collection site rather than an actual market place for energy.

We get most of our work from word of mouth or recommendation so never give the hard sell, nor do we have to.

M1AGM

2,800 posts

39 months

Tuesday 28th March 2023
quotequote all
We only use around 8mwh from the grid a year on a smart meter at our office premises. We have panels and a battery helping. Our fixed deal ends in June, 20p day 16p night, 25p sc. If that is of interest to you @Geoff (or anyone else) then please do PM me. Sorting out utility contracts is a task I loathe.

Geoffcapes

828 posts

171 months

Tuesday 28th March 2023
quotequote all
7 CUU said:
Is there any help after the 31st March ? and if so at what level, all quiet out there regarding EBRS (google search) Budget only spoke about continued help for homes.
This is probably the clearest explanation for the EBDS I've seen.

https://bionic.co.uk/business-energy/guides/energy...


To be honest energy prices have fallen sufficiently that if you were to procure your energy now, you would be close to or lower than the rates where you would get relief.


mattybrown

287 posts

217 months

Tuesday 28th March 2023
quotequote all
My problem is our standing charge went from 70p per day to £7 per day, apparently worked out from 2018, when the building we are in didn’t exist and yet no one can help me to get this looked at because OfGem set this price?

How can a body paid for by the energy companies be allowed to set the standing charge?