A rise in gas and electricity prices seems inevitable, especially given the current background of economic turmoil, but customers of Centrica-owned British Gas have been hit by massive energy price rises. On average, they will charge an extra 18% for gas and a further 16% for electricity, adding up to around another £190 on the average household’s annual energy bill. For businesses, this price hike is expected to hit them harder, especially when many small companies are under pressure to cut costs as a result of falling sales.
Wholesale Costs
Centrica cited a rise in the wholesale cost of gas for their sudden price hike: in nine months from the winter of 2010 to August 2011, it has risen by an astonishing 30%, while they claim that they buy 50% of their gas from the international wholesale market. Whatever the cause of the price rise may be, the fact is that many struggling businesses that need to save money instantly haven’t been helped by British Gas’s disappointing news. This has left companies pondering how, if at all, they can cut their energy bills.
Some might look into reducing the amount of gas and electricity they use. Energy efficiency is something that many businesses should consider, as it helps to identify waste, save money and, in some cases, help to make everything run more smoothly. However, other companies who do all they can to use the bare minimum of energy find that they have no other options, although there is something worth considering if they’re with British Gas or another big energy supplier and are dissatisfied with what they’re being charged.
Moving to a New Supplier
Companies who cannot take high price rises or poor customer service from their existing supplier could always move to another supplier, even if they feel like they’re ‘locked-in’ to a contract. Switching to a different energy company might sound like a waste of time, especially if just about every energy supplier is being forced to increase prices due to wholesale prices going through the roof. However, shopping around for a good deal can be fruitful.
