What should energy buyers keep an eye on in the coming year and what should they do?
The new year brings new challenges and new opportunities to the energy buying market. As difficult as it is to clear the crystal ball, we can expect a mix of the old and new to make its presence felt over 2019.
It’s certain that significant trends of 2018 will gain a stronger foothold, alongside new opportunities and challenges that open from new government policies and technological innovation.
What’s most certain, is that energy buyers need to keep an eye on the changes that 2019 brings.
The past turbulent year has seen natural events and international energy policy changes impact energy markets as much as they made non-industry news. While they signify the larger influences at play, and legislation and technology will retain their significant role, there will be an increasing onus on companies to take the initiative.
Whilst commodity costs gas have slightly come down at the back end of last year, electricity has continued to creep up. Third party costs including government legislations now make up over two thirds of an energy bill. Add a turbulent market that seems to be cold called to death by suppliers, brokers and everything else in between pressurising people into locking down contracts over the phone. It is of little surprise that more and more business owners / energy buyers are finding it harder to engage with the market and find a trusted partner.
Steps you can take now to ensure you are not overpaying for your energy and water contracts:
Check your utility bills
and ensure that you are in a contract with your current utility supplier. Out of contract and deemed rates can cost up to 80% more than contracted rates. Utility suppliers use clever and often misleading wording on your bills like “ you are on our best variable tariff” this is just a fancy way of saying you are on that particular suppliers standard tariff and not in a fixed priced, fixed term contract.
Engage with a reputable brokerage/ consultant
who has direct relationships with energy and water suppliers. This ensures you get the best commercial terms available and not just offers from one or two providers. Sub brokers are a type of broker that have access to energy suppliers but through a third parties’ relationship. Whilst they can provide competitive prices, often it adds another layer of complexity and ambiguity to the relationship especially when issues or queries arise. Sub brokers by virtue are also driven by incentives from their “Umbrella” or “Super” Broker they contract under.
If you are a business owner or energy buyer for a SME or Corporate business feel free to get in touch with the team at SK Energy for a FREE Business Energy Health check. The no obligation review will ensure you are on the right strategy for your business and allow you to make an informed decision without the pressure and harassment of being sold too. The team believe in good old fashioned advice and relationships.
SK Energy are a multi award winning, local brokerage with over 30+ direct relationships including some exclusive relationships with suppliers not available on the open market. For every client that successfully switches provider through SK Energy a donation of £10 is made to Niamh’s Next Step.