Energy Prices Soar

Energy prices continue to soar, with 13-year highs being seen in the wholesale market. A global increase in the demand for gas has seen a significant risk premium added to energy contracts this year.

Energy 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 (the National Grid), policy and system costs and electricity transmission/distribution costs.

The biggest single cost on a bill is the price of the energy. The wholesale cost of the energy makes up approximately 40% of an electricity bill and 70% of a gas bill, with the remaining being TPCs, which have been continuously rising in recent years and can be volatile.

This pricing report will focus on the energy element of a bill to help you keep track and understand the wholesale energy market and the factors affecting the price of your contracts.

What does this mean for me and my business?

As with your personal bills, it’s time to check your business energy deal and see if you can get a better tariff by switching supplier. We offer a full review with a choice of multiple providers to help you stay on the best deal.

To understand the full market analysis we’ve got a handy report that details all the main factors that have contributed to the increased costs that are dominating the news. Click here to download