Our summer is pretty much over, so winter will be here soon. If you follow the British Army (heating goes on the 1st October whether needed or not), your energy use will be increasing dramatically very soon. Combine that with more lights on because of darker days, you can see how quickly you increase the amount of energy you are going to use over the coming months.
Of course, with increased energy usage comes the increase in energy costs, and it would seem that this already creeping up on us with last Friday (15th September) being branded the most expensive day of the year for energy. Comparison website MoneySuperMarket.com found that the likely cause for the spike in energy prices was down to British Gas’s 12.5% price increase coming into play.
Their energy expert Stephen Murray said, “The British Gas price increase is the latest in a long line of blows to consumers that languish on standard variable tariffs, and these customers will continue to be impacted by price increases unless they move to a competitive, fixed rate tariff.” Which once again highlights the issue of loyalty getting you nowhere when it comes to energy firms, due to the risk of falling onto your supplier’s standard tariff.
Despite the constant warning signs and headlines, many businesses (around 70%) still remain on standard tariffs (the most expensive option out there). Therefore it is only those businesses that change provider every time their contract ends who are able to keep their energy costs down.
Murray added, “With 42 tariffs ending this month alone, it is key that people stay on top of when their rate comes to an end to avoid paying around an extra £299.”
Yet the findings also revealed that the difference between the average annual cost of a standard tariff with one of the Big Six (i.e. British Gas, Eon, Npower, SSE, EDF and Scottish Power) and the best-fixed rate tariff out there is actually up to £319 a year – a massive saving in the great scheme of things.
However, this isn’t the only problem that may be facing the UK’s energy market this winter.
The cost of energy has already risen well above last year’s rates, so it’s highly likely that the British energy market will return to how volatile it was back last winter.
The extreme price hikes, which continued well into spring, were because of concerns to do with France and Germany’s nuclear plants. The French government ordered audits on many of their plants due to irregularities and falsification of documents made by the industry giant, Areva. EDF Energy has 58 French nuclear reactors, hence why this had a knock-on effect on the UK.
To avoid any of the issues which may arise this winter, it’s highly recommended that businesses check their energy bills to see when their current fixed rate ends, then look into locking in new rates before the winter months come along.
At Frontier Utility we are able to analyse your bills whenever you see fit, then advise you with the best tariffs for your business. Talk to us on 08000 92 62 32 or a fill in our contact form to get in touch.