State Of The Energy Market - October 2022

As we are now heading into the winter season, the current UK Energy Market is still deep within a crisis that shows little sign of abating heading into the New Year. For businesses up and down the country including AdaptiveComms, all eyes and ears are carefully trained on the developing situation. Recent concerns about the Nord Stream pipeline leaks and the threat of cold weather dropping back to historic average levels have added more tension over the crisis.The Energy Bill Relief SchemeThe government announced their Energy Bill Relief Scheme on the 21st of September, in a bid to help business customers tackle the increased energy costs. The idea of the scheme is to cap the wholesale costs that energy suppliers can incorporate into the rates for businesses, but will not determine the final rate paid by business customers.Only businesses who signed their contracts from the 1st of April 2022 will have discounts applied to their energy consumption between 1st October 2022 and the 31st March 2023.Nevertheless, the bill is welcome news for support for businesses and helps reduce growing concern over short-term supply issues.Tax Cuts And The Fall Of The PoundThe current state of the energy market has recently became even more volatile, when the government announced tax cut plans, which saw the pound weaken and fall to its lowest point against the dollar since comparable records began more than 50 years ago. Oil, gas, several food products and a variety of other commodities imported have become more costly.Fixed Rate Contracts Signings SpikeMany businesses were sitting on out-of-contract rates, waiting for further details of the announcement. We have since seen a surge in customers signing up for fixed-rate contracts after the government advised customers to switch as usual, as the appropriate reductions will then be automatically applied.My Business Is Coming To The End Of It's Contract!There is a maximum discount that can be applied (40.5p /kWh on electricity and 11.5p / kWh on gas) The prices are only expected to increase as temperatures drop and demand for gas-fired heating increases. If you are out of contract or coming up for renewal in the next few months, do not wait to secure a fixed-rate contract and maximise the benefits of the scheme.If you wish to discuss your concerns over the situation or if you need help with finding the right contract, then please pick up the phone and call 01704540547 and a member of our team will be in touch.