The State of Energy Prices in The United Kingdom
The United Kingdom energy sector is currently facing a serious crisis. In particular, energy prices are skyrocketing. So, what’s causing these energy fluctuations? Well, this guide is going to touch on the energy sector in the UK, how the prices are rising, the energy price cap, how to choose the right energy deal, and how to switch to a better supplier. Keep reading!
Why Are Prices Rising?
According to the stats, energy prices have risen by a whopping 250% over the past few months. But it hasn’t yet been established why the prices have suddenly gone through the roof. Nonetheless, there are certain aspects that are believed to contribute to this price upsurge. And these include the increased demand for LNG (liquified natural gas) from Asia, gas shortage across Europe, low winds, and complications associated with the robust Nord Stream 2 pipelines. Coupled with frequent outages, the low winds have quickly resulted in lower renewable energy production.
Network, Policy Costs
High electricity production and distribution costs have also led to a significant increase in network and policy costs. The RO (Renewable Obligation) for instance, has rapidly increased since the onset of the COVID-19 pandemic. As a result, energy suppliers have been hit by ‘bad debt’, meaning that they’ve lost huge amounts of money since customers can’t afford to pay their utility bills.
Switch To a Better Electricity and Gas Supplier
Are you planning to switch to a different energy supplier? Well, the best way to go about this is to compare different quotes. You may also want to consider speaking to an experienced energy broker.
All you need is to provide him or her with your business name and they’ll utilize smart data to find the best energy tariffs for your business within the shortest time possible. From the generated list, you can then decide which deals are better suited to your needs.
If you follow the right steps, then you’ll reap the optimal benefits of switching to an affordable energy provider. All you need is to conduct extensive research, weigh different options, and settle for the most affordable deal possible.
Relocating To a New Building
Are you planning to relocate your business? If so, then your current energy contract might be transferred to your new business premises or it may be canceled. Once you sign up for an energy deal, you won’t be allowed to leave it early. You cannot terminate the contract before the end of the agreed period. So, be sure to weigh your options before deciding to make a switch. Before switching to a new supplier, make arrangements to clear your final energy bill. This will ensure that you secure the most affordable deal. Also, learn energy-saving tips to make your business sustainable.
The Bottom-Line
The above guide will give you insights regarding energy prices in the UK. In particular, you will learn about why prices are on the right. You will also get special insights regarding switching to a better supplier.
