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Business Gas Tariffs

There are a number of factors which influence the cost of business gas tariffs. The predominant reason being the wholesale cost. The cost changes on a daily basis dependant mainly on demand, the higher the demand on the national grid generally pushes the wholesale price up. As much as we joke about the UK summer the fact that we have a short summer which it feels like is getting shorter year on year only increases the cost of gas to all, including business gas users.

The wholesale price is not the only consideration, in the main increases in tariffs are attributed to the unit cost (almost immediately). The cost of gas has almost doubled from its peak in 2005 with on average 10% annual increases. Although this is not the only factor when checking business gas prices you always need to check the rate of daily or monthly standing charges.

Albeit prices have moved in that time we have not seen any significant reduction and the average gas bill has increased by 12% per year. A considerable amount of this increase is due to the source of the gas. The UK energy market is divided into numerous sectors; approximately 5% is from renewable energy, sources such as solar power and wind turbines. This is a small amount but increasing steadily. Next is Nuclear power which again accounts for a small percentage of our energy, unlike our European counterparts who rely mainly on this source.

The majority of our gas is now imported where as previously we had our own North Sea supply and although we have contracts across the globe we constantly find ourselves on the brink of running our reserves to depletion. Recent falls in our own gas supply have seen imports of Gas from Qutari rise from £10 million in 2005 to over £4 billion today.

Wholesale prices for gas are relatively constant at the moment although after a rather prolonged winter with sharp cold snaps it is anticipated this will rise in 2014 however business gas prices have had a general increase of 10-12% over the last 12 months. In that time gas has ranged from 4.2 per unit to 4.57. To obtain the best business gas tariffs call us now for a free no obligation quote on 0161 751 2586

The prices usually hit the highest point during the winter months when we use more energy for heating due to the cold British weather. This is generally a bad time to renew your contract, so if possible change your contract date to the summer months and you will have a more favourable outcome.

The cost of wholesale gas prices in the UK have recently stayed flat due to the current worldwide financial crisis and winter like summers.. We have always stated that you should check your contract on an annual basis as if left unchecked they can increase by more than 100% due to rollover contracts. It is understood that more than 75% of business do not check their contracts due to the misguided believe that there are no savings to be made. If you are one of the 75% give business gas prices a call and we can show you the best way to save and it won’t even cost you the price of a phone call.