How do long-term energy prices affect businesses?

Article posted

17th May 2023

Read time

3-6 min read


Mollie Pinnington

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It is important that if you own a business you plan for all issues that could affect the future progression of your company. Energy prices should be one thing your business considers when planning budgets. To do this you need to have some idea of what is expected from the energy market over the next couple of years.

Whilst it’s best to be aware of what could happen over the next decade with the energy market, it’s also important to have some flexibility when it comes to planning for your business. As the wholesale energy market can be quite volatile you should use future outlooks as a guideline but ensure you allow room in your plan. After the past few years, it has been made clear that planning for energy price rises is critical for businesses as many have had to close due to the energy crisis.


What is expected for wholesale prices?

 The UK is planning on introducing more clean power generation over the next couple of years. However, power prices could remain high for a while as we are still reliant on fossil fuels for a lot of electricity in the UK. However, as we get closer to 2030 it is expected that many high-cost generators will have been decommissioned as the country will start to rely on cleaner energy forms.

Also, gas prices may remain higher in the global energy market due to the EU having to import more expensive gas instead of cheaper Russian gas.  The UK is also expecting a reduction in gas from the North Sea meaning that we will have to rely on expensive imports from other countries.

 it is useful to see what issues you could face when it comes to energy and what you could start to plan now to combat this.


Clean energy generation rising

 Whilst there will be many changes in the energy market over the next decade, this will have a lot to do with how the UK generate and export energy. The government have a current target to remove all coal capacity from the energy mix by 2024.

It is also expected that battery capacity will increase as we start to rely more on renewables. Having sufficient battery storage is critical to improving the renewable energy system as this is the only way to ensure demand doesn’t outweigh supply and lead to blackouts.


What can your business do to prepare?

We know that staying on top of the energy market is not the easiest task especially when you are trying to run a business. If you don’t have the time or resources for planning when it comes to your energy bills, then don’t worry we can help with this.

At Resolve Energy we have a team of energy consultants that can not only help you find the best energy bills to fit in with your budget but can also give you advice on the best time to switch based on market movements. If you would like to find out more, get in touch today.  

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.

Looking to pay less on your energy bills?

Get a free quote today