In 2022 although the energy prices were high due to the pandemic causing volatility in the energy market, it was looking like energy prices could have decreased. However, in February more volatility was caused by Russia’s invasion of Ukraine.
This has continued throughout the year, and Russia has continued to restrict energy to EU countries due to the sanctions put on the country. This has led to an energy crisis in the UK that has majorly affected all consumers.
Because of this energy prices are currently higher than they have ever been. Unfortunately, this is only going to get worse in 2023 as prices could rise to 50%. As we know this going to be a tough time for many businesses which is why we have put a guide to your energy bills for the next year.
Contracts
As the price of wholesale energy is expected to go up, we would recommend that you take action when it comes to your energy bills as soon as you can to secure the cheapest prices possible. With the government energy support being on until March 2023, we would still suggest it is best for businesses to be on a fixed-rate contract.
On a fixed-rate business contract, the wholesale rate of energy will be capped at 21.1 p/kWh for electricity and 7.5 p/kWh for gas. This means you could benefit from energy savings for at least the first half of the year. The government have not updated businesses on what is going to happen in terms of support after March. However, this support could be extended which would mean that it would be advantageous for your business to be on a fixed contract.
Sometimes it can be an advantage for a business to go on a variable rate tariff. This would mean that your unit rate would vary each month depending on market movement. However, this type of contract is only an advantage to your business if it is predicted that energy prices are going to drop throughout the year. In this case, 2023 is going to bring the opposite which means your business could be paying a lot more if you are not on fixed rates.
When it comes to business energy contracts there are many different factors to consider. You might be best speaking to an energy consultant before deciding on what to do with your energy bills. At Resolve Energy we have a team of energy experts that have expert insight into the energy market. If you would like to discuss what energy contract your business should be on then get in touch today.
Reducing consumption
Another way to lower your business energy bills next year could be to reduce how much energy you consume. There are a number of ways that you can reduce energy consumption whether this is through sustainable practices or installing energy-efficient technology through your business.
See more here for tips on how to increase sustainability throughout your business.
If you would like to reduce your business’s energy consumption next year and save hundreds on your business energy bills, then why not look at the plethora of Net Zero services we offer?
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.
