The rate achieved is based on a number of factors such as the current market for wholesale electricity and gas, annual usage, location and term of contract and usage patterns.
Throughout 2015, the market saw energy demand fall owing to the warmer weather, strength of the pound and the increased renewable energy generation. The oversupplied system meant that import power prices fell leading up to Christmas and the New Year. With overheads increasing, it is important to squeeze more value out of suppliers, regardless of the current market position.
In the present market the rates offered by suppliers can often vary by as much as 30% which means it’s important for clients to tender their contracts through an independent broker to maximise potential savings. A 1p/kWh improvement on an electricity supply quote for a 200MWh/pa business, can equate to savings of £2,000 per annum and so it’s vital that businesses seek third party advice on setting up initial supplies or negotiating renewals.