Oil prices have started to increase from the plunge they took last month, reaching 18-year lows as the pandemic crippled the global demand for oil and countries came to a halt due to imposed lockdown measures.

As the measures are lifted, the demand for oil is starting to increase, along with oil prices. However, in comparison to before the pandemic, oil prices are still 40% lower in trade price. It is unlikely that they will stay this low for long, as demand across the world continues to steadily increase.

There aren’t many positives for businesses having to weather the coronavirus storm. However, one silver lining is that energy prices are at an extreme low due to reduced demand around the world, consequent oil price wars between Saudi Arabia & Russia and also due to a warmer winter which has contributed to the fall in demand.

Bills are driven by both the price of energy on the wholesale market and Third Party Costs (TPCs). TPCs include non-energy costs set by the government, network, policy and system costs and electricity transmission/distribution costs.

With Brexit scheduled to take place on 31st October, it is looking more likely that we will leave the European Union without an agreement in place and therefore be paying more for our energy. If we leave the EU without a deal the pound will devalue.