State of the Energy Market – February 2023
Energy Crisis, What can you do?
Gas prices have fallen! With temperatures higher than the seasonal norm has resulted in a reduction in gas for power demand. Demand is expected to soften further in the next few days with temperatures forecast to rebound following the recent cold snap. Further expectations also outline more liquefied natural gas to enter the UK, as a key export terminal in the US takes steps to restart.
European gas storage has hit an all-time high for this time of year following on from a record-warm October last year. This helps to boost energy security for Europe. EU gas storage is at 81% full, with German gas levels almost full at 90%. With storage at these levels, Europe’s energy outlook is in a much stronger position now and most economies are likely to escape recession. However, the uncertainty and volatility around energy prices remain.
The UK have an advantage with downward pressure on markets due to gas demand decreasing lower and strong storage levels. Along with good wind speeds and temperatures below the seasonal average. Whereas there is upward pressure on markets due to demand in China predicted to rise, potential impacts of curbs on Russian exports and planned outages in Norway.
One way in which businesses can help themselves out during this period will be by introducing energy-efficient technologies, if not done so already. Having energy-efficient technologies will have a huge impact on saving, as these options contribute to reducing costs.
The Energy Bills Discount Scheme
Thanks to Energy Bills Discount Scheme, it is about to get a whole lot easier and barrable for eligible businesses, charities and public sector organisations. The reason being, they will benefit from a per-unit discount on bills. This provides solid support for businesses under the new scheme.
Just before the escalating crisis in the far east and the subsequent Russian invasion of Ukraine, gas prices halved. This may be a positive for gas bills. Whereas, on the other hand, energy bills are at their lowest cost in 10 months. As businesses waited for this. Experts warn that bills are not likely to go down ”for the next two or three years”.
The new energy scheme will run from 1st April 2023 to 31st March 2024. This will be available to everyone on a non-domestic contract including businesses, charities, the public sector, hospitals, and care homes. Allowing a discount of up to £19.61/MWh for electricity and £6.97/MWh for gas.
Having this on board will have a huge impact on non-domestic contracts, benefiting them with little savings when it comes to paying their electricity and gas bills. The relative discount will only be applied if wholesale prices are above a certain price threshold.
Are You Concerned? Talk To AdaptiveComms About It
If you have any concerns about the current energy crisis for your business that you wish to talk about, or is your business looking to find a new supplier? At AdaptiveComms, our friendly team can provide you with the support and help you need to get a plan in place, in order to manage your business energy consumption. We can assist you in finding the best deals currently on the market and help you save money where necessary. You can find out more details here or you can call 01704540547