Low Energy Prices

Energy prices have reached an unprecedented low – now is the time to switch

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. Prices have reduced by 50% in the last two weeks alone.

THE PERFECT TIME TO DO SOME HOUSEKEEPING

Whilst we are all frantically trying to protect our businesses in these uncertain times, anything that can help cut costs is welcome. So, whilst reviewing your energy contract may not ordinarily be top of your to do list, take advantage of some resulting downtime and secure a new long-term deal whilst prices are low.

AN EASY REMOTE PROCESS

Here at CAN Solutions, Energy is one of many different products we supply to businesses, and unlike some it’s really easy to do remotely with very little risk. We operate a review and compare model to provide you with a clear proposal for switching your current contract. We can even delay the start date if you still have some time left to run on your existing deal. All we need to get started is a copy of your energy bill.

SECURE TODAY’S PRICES FOR UP TO 5 YEARS

Unlike some services where prices can still fluctuate within a contractual period, the price you sign up to today is what you will pay for the whole term of your contract. With most energy deals spanning 5 years, that’s a lot of savings you could bring to your bottom line by acting now.

WHAT ARE ENERGY COSTS MADE UP OF AND HOW DOES THIS AFFECT THE PRICE?

Energy tariffs are made up of the commodity cost and then a mix of other government taxes and charges. Typically, only one third of the costs are due to the commodity itself. What we’ve seen happen just recently is that as well as the commodity price dropping sharply, so have the non-commodity-based elements due to the current global pandemic and its knock-on effects. To put this into perspective, right now costs are around £24 per megawatt compared to £70 in July 2019 and commodity process are less than half what they were this time last year.

WILL IT DROP FURTHER?

Whilst we may see a marginal additional drop (we’re talking between 1-3%), prices can’t get much lower or else it becomes impossible for the industry to work at a profit. Our advice is don’t delay, snap up the low prices now in case they start to increase sooner than expected.

WHAT OTHER ADVANTAGES ARE THERE TO SWITCHING?

You can also take the opportunity to switch to a low or no standing charge tariff. This means that when you aren’t using your energy you don’t pay. Many business will be paying flat standing charges throughout weeks and months in some cases when they don’t need to.

WHAT ELSE CAN I DO NOW DURING THE CORONAVIRUS EPIDEMIC?

We strongly advise all business that can do so safely, to take meter readings if you’re not already on a smart meter. This way you will be billed on your actual usage not on inflated estimates based on times of higher usage. This is especially pertinent for live-in businesses such as hotels, restaurants, pubs etc where you can easily access the meter and will almost certainly be using vastly reduced volumes of energy whilst closed to the public.

SWITCH ONCE, SWITCH FOREVER

If you are one of the many who are finding the constant need to switch a bit tiresome, we hear you. We are able to offer you a service where you have a “no touch renewal”. Each time your energy contract comes up for renewal we will automatically find the lowest price deal for you to move on to. No risk of paying high out of contract rates, and no admin around researching a new deal.

To get started simple contact us on info@can-solutions.co.uk and send us your bill so you can at least save some money during these uncertain times.