There are more tough times ahead for both commercial and domestic UK energy customers
It’s a difficult time for UK energy customers, with prices higher than ever and a volatile landscape to contend with. Businesses and households alike are facing challenges and an uncertain future, with winter promising even more difficulties.
With all this going on, it’s tempting to bury your head in the sand, but knowledge is power when it comes to your utilities. With that in mind, here are the main things going on in the energy market right now.
Ofgem to review price cap four times a year
Energy regulator Ofgem has announced that the energy price cap will be reviewed every three months, rather than every six months. This relates to the maximum amount that energy suppliers can charge per unit of gas and electricity.
In its statement announcing the change, Ofgem says more frequent updates will reflect movements within the wholesale gas and electricity market faster and more accurately. As such, the cap will now be reviewed every January, April, July and October.
The current domestic energy price cap is set at £1,971 per year based on typical use, with the next price cap announcement set to be made on 26th August ahead of its implementation on 1st October. Energy market analysists Cornwall Insight predict that the cap could hit £3,359 between October and December, with forecasts for January reaching a whopping £4,266.
Average energy bills to exceed £3,000 a year until 2024
While we’d all like these record energy prices to be a blip on the radar, experts say they are going to remain high for the foreseeable future. Average household bills are predicted to remain at more than £300 a month until at least 2024, according to Cornwall Insight.
The company’s senior consultant Dr Craig Lowrey said: “While the government has pledged some support for October’s energy rise, our cap forecast has increased by over £500 since the funding was proposed, and the truth is the £400 pledged will only scratch the surface of this problem.”
Lowrey goes on to say that support for the next cap periods should be “on the top of the to-do-list for any incoming Prime Minister.”
How does this affect business energy customers?
Well, although commercial energy doesn’t feature a price cap in the same way as household energy, the trend in pricing should still be indicative to businesses. Understanding what is going on at home for employees is also relevant to company owners as this will help to shape your approach to salary reviews, staff benefits and even remote working practices.
Consultiv Utilities can help see your business through
It’s never been more important to pay attention to your utility spending, especially if you’re a business worried about surviving through this tumultuous period of energy prices. It’s easy to feel powerless about the state of the energy market right now, but Consultiv Utilities are on hand to help you take back control of your utilities and stand you in better stead.