There have been claims that some energy firms have not been passing on the benefits of recent government financial assistance to businesses.
Last month support began for all businesses that signed their energy contract after the 1st of December 2021. The energy bill relief scheme ensures these businesses will pay a discounted amount on the wholesale energy proportion of their energy bill.
However, despite support, many businesses are reporting higher energy prices. The UK’s hospitality manager has spoken out on behalf of the vulnerable sector which has majorly suffered from the energy crisis. Ms Nicholls has written to the Business Secretary asking him to urge Ofgem to launch an investigation into energy pricing for commercial businesses.
It has been believed that some energy suppliers are quoting prices significantly above wholesale prices. This would be undermining the government energy bill relief scheme.
Many people are calling for the energy regulators to ensure that energy suppliers are not deliberately profiteering from the current crisis.
What is the Energy Bill Relief Scheme?
If your business has not already heard there is an Energy Bill Relief Scheme that has been added to all business energy bills by the government. This support began on the 1st of October for all businesses that signed their energy contracts after the 1st of December 2021.
The Scheme essentially discounts the wholesale element of your gas and electricity bills, to relieve businesses from high prices.
If you are on a fixed rate tariff the wholesale element of your bill will be capped at 21.1p/kWh for electricity and 7.5p/kWh for gas.
If you are on a deemed or variable rate tariff, then you will still benefit from the Energy Bill Relief Scheme your support will be a little bit different. You will receive a discount between the wholesale deemed rates and a maximum discount of 34.5p/kWh for electricity and 9.1p/kWh for gas.
How to make sure that my business is getting the best prices?
There are a few things your business could do to make sure you are getting full advantage of the government support available.
Make sure you are receiving support
The price cap is automatically added to business energy bills. If your business energy bills are paid through your landlord or another third party, then make sure that you are benefitting from the price cap support.
Getting a fixed rate tariff
If you are still on a default tariff or are thinking of waiting until the support is over before signing a new contract, then you could be missing out on huge savings. Default wholesale prices are normally amongst the highest rates suppliers have. This means you are going to be paying much more than those on a fixed-rate contract.
If you don’t want your business to be left vulnerable to higher prices then it would be best to ensure your energy bills are fixed.
Speak to an energy consultant
An energy consultant could advise you on the best option to choose for your business. At Resolve Energy we have a team of energy experts, that have extensive market insight.
If you would like an energy quote today or just need advice on what to do with your energy bills, then get in touch here. If you would like to fast forward the process of getting a new contract you can always get a free quote here.
If you're looking to save money on your energy bills then why not get in touch today? The relationships Resolve Energy has developed with over 24 of the UK’s biggest business energy suppliers allows our energy experts to source the best business energy rates available for your company right when you need them. Request a free quote today and start saving money on your energy.