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What affects the cost of electricity for businesses?

Since corporate energy rates are subject to frequent fluctuations, it’s critical to choose the ideal
moment to lock in your energy agreement. Our energy specialists are here to assist you in locating
the ideal business energy deal. See if it makes sense to fix your energy prices through 2024 by
reading our advice. The following are some of the variables that have contributed to fluctuations in
energy rates:

An increase in demand – During the first lockdown of 2020, energy expenses experienced a historic
low because of a sharp drop in energy usage. But costs also rise as the return to normalcy
progressively boosts energy supply and use. Over the past year, gas prices have reached an all-time
high and energy costs have increased by fifty percent.

World events: The laws of supply and demand ultimately determine how much oil prices fluctuate.
When natural disasters, wars, or other unpredictability’s strike countries that produce gas or oil,
output and availability are reduced, which drives up costs.

Currency: The price of gas and electricity can fluctuate depending on the value of the currency, just
like it can for other commodities. Because a significant amount of the UK’s energy is imported from
Europe, fluctuations in cost are influenced by the value of the pound in relation to the euro.

Weather Conditions- There are two ways in which weather patterns might impact energy prices. As
the world becomes more dependent on renewable energy sources—Britain, for example, is a major
offshore wind generator that accounts for about 40% of the world’s capacity—a decline in wind
speeds directs more natural gas towards power plants, which drives up prices.

Energy price regulation: Suppliers now essentially have a base around which to frame their energy
pricing thanks to the energy price cap, which was implemented to end excessive energy expenses.
Although residential energy consumers are directly impacted by the energy price cap, market prices
have increased overall. commercial energy is exempt from price caps, and commercial energy unit
rates are the only factor that determine government support for enterprises.

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Do you know whether you’re overpaying your business gas, electricity or water bills? Would you like to switch to a cost-effective, green and sustainable energy supplier? Find out how we can help you reduce your bills and increase your profit margin.

0116 504 0708 customerservice@corporate-utilities.co.uk