At Save On My Power, we recognise that volatility and rising wholesale costs in the energy market are of concern, especially when operating a business in the hospitality sector
That’s why, we’re committed to providing help and guidance to assist you in budgeting for your energy needs both now and in the future. By understanding your specific energy requirements, and through our extensive energy procurement arrangements, we work to ensure you never pay more than you need to for your business energy.
The energy market is complex, so understanding when prices are at their most volatile we believe is key to ensuring you never agree a contract that will result in you paying more than you need to for your business energy.
Most energy contracts can be renewed between 6 to 12 months in advance of your contract anniversary, so by reviewing prices early, you could save money. Throughout the remainder of 2018/19, energy prices are expected to increase. These increases are being driven by several factors, including increased non-commodity charges. By securing new pricing options early, you could benefit your business more than you realise.
Since autumn 2016, energy wholesale costs have increased by as much as 51%. In 2016, an average price for electricity was below 11p/kWh while the current average price at October 2018, is in the region of 14.79p/kWh (if you are paying more than this, you may be paying too much).
Instability in the UK in relation to Brexit plus other factors – older generation plant and delays in new generation plant being brought online, also impact. The UK relies on increasingly expensive imports to fuel its energy market, anticipated disruption to that supply contributes to increased prices. With no let-up in rising wholesale costs, we work hard to identify alternative ways for you to reduce costs. One way of saving money, is always to ensure you are on the correct charging structure and not using power unnecessarily.
A stark fact is that approximately 40% of businesses operating in the hospitality sector are charged based on a single rate or out-dated tariff.
If your business consumes power around the clock or you operate 7-days a week, you should be considering a tariff called evening & weekend. This tariff offers reduced rates during the evenings, weekend and overnight periods.
Often, hospitality businesses have not switched to this tariff because they are unaware of what it has to offer. The process for changing to an evening/weekend tariff is straight-forward and is often arranged at no or low cost. A simple change of tariff could mean you save your business money!
If you are opening a new business, we can help guide you on choice of tariff or charging structure. In areas like Finnieston in Glasgow, restaurants are opening after significant investment and refurbishment, but the meter installed (whether it be the original meter or a new meter following a service or supply upgrade), remain as a single-rate – this means you’ll end up paying more than you need to.
Other challenges relate to electricity supplies which have migrated to half-hourly meters following a regulatory change introduced by Ofgem from 1st April 2018. If you’ve been impacted by this change, we offer help on how to reduce associated costs.
• If you want to earn £100 for renewing your power or gas contract with us, get in touch today and quote SLTN challenge.