SME’s and large corporates are facing additional challenges with working alongside COVID-19 and an economic downturn, minimising risks and controlling costs are now paramount to ensuring resilience and sustainability.
The energy market is highly volatile at the best of times and given the current global climate we are living and working in, it is more volatile than ever. With COVID-19 sweeping across the world, the fear of a second wave in the UK, Brexit, and many other uncontrollable factors, predicting what will happen to the energy market is plainly more difficult and with no guarantee.
Historically, demand is always higher in winter months which usually coincides with price increases. It is likely that prices will continue to rise as non-commodity charges have continued to increase throughout and suppliers will be looking to recoup where possible due to the drop in demand as countries and local areas are in and out of lockdown. For many businesses, the pandemic forced temporary closures to sites and changes to working practices, this also highlighted the impact of energy on businesses bottom line, with many now wanting to continue their reduction in consumption and improve efficiency.
What should businesses consider before negotiating energy pricing?
As we head out of summer and into autumn, businesses should go into winter prepared by negotiating their energy contract early to avoid unwanted costs and ensure they have the right contract to suit their needs. Businesses should reflect on how they managed their energy during lockdown, the visibility of their meters and access to their data for monitoring and sending to suppliers for accurate billing. Businesses should review their landscape and the likelihood of change, any future plans or new connections and check if your current energy contract right for your business moving forward. All are vital to providing budget certainty and minimal risk to your business. Find more information on key considerations for securing your energy contract here.
After giving due consideration to all external factors and reflecting on how Covid-19 has and might affect your business going forward, make sure you have all the right information for you to make an informed decision regarding your energy contract(s). These four key points act as a good steer:
- Know your energy usage
- Know your minimum volume requirement should there be another lockdown
- Have remote visibility and access you to your energy data
- Secure the right contract to fit your business needs
How can we help
Our consultants are experts at negotiating contracts and can handle all the tendering and paperwork on your behalf whilst ensuring you are receiving the best deal and contract for your businesses needs. If you would like to know more about energy prices and contracts, please send us an email at email@example.com or call us on 03330 433 233.