How to avoid the skyrocketing wholesale power prices
With winter approaching, most people are turning on the heating. But this winter is a little different to last. Wholesale power prices have recently skyrocketed. Gas prices have risen too.
What’s causing the skyrocketing energy prices?
The reasons for the massive power price rises are varied, but they’re heavily influenced by uncertainty over the ability of certain nuclear plants to operate fully through the winter. When these large power plants can’t operate as planned, other (far more expensive) plants operate to keep the lights on. That puts wholesale prices up.
Why should small business care?
Just like interest rates, changes in wholesale power prices result in changes to domestic and business power prices. Recently, GB Energy hiked its domestic prices by a whopping 30%! Others have too, but by smaller amounts.
If like 45% of all UK businesses you’re on a ‘Variable Price Plan’, a ‘Deemed Rate Contact’ or on ‘Out of Contract Rate’ Plan, that’s bad news for you, and great news for the energy supplier. You’ll be paying these increased prices right now.
What can you do?
Here are 3 things you can do:
- Check if you’re on a Fixed Price deal now – it should tell you on your bill. It sounds obvious, check for the words ‘Fixed Price’. Some bills describe the contract as fixed term or other terms: this does not mean fixed price
- Get scanning for a better price. Different energy suppliers run different deals at different times: they compete for your business – so use this to your advantage
- Check all options, short and longer term. Consider all suppliers – not just the brands you know – and check both short term and longer term deals. There are lots of suppliers hungry for your business; and just because you haven’t heard their name doesn’t mean the power is any less reliable (energy suppliers don’t actually deliver the power!).
The team at Energy Scanner is here to help. Get in touch if you’re not sure: it won’t cost you a penny firstname.lastname@example.org