As wholesale prices for oil tumble, it’s natural that people expect these costs to be passed on to their home or business. Falling prices in recent months have made filling up on petrol and diesel far more affordable, but how about utility bills? As a business, keeping your office or site running throughout the week can be a huge drain on your revenue. But not everyone will benefit from low energy prices, and those with the opportunity to reduce their bills should act fast.
THE BIG SIX
With mounting pressure against the Big Six to pass on the recent drops in wholesale prices to their customers, E.On was the first to act by putting its standard tariffs down by 3.5%. British Gas and Scottish Power followed suit a few days later, with slightly larger cuts to reflect prices that show no sign of firming up.
Great news for homes and businesses throughout the UK? Don’t be too quick to celebrate. After all, wholesale energy prices fell by 6.6% in December alone.
Many of the cuts that are being put in place exclude fixed tariffs, meaning no change to customers who are tied into a plan for their energy costs. And for those who will benefit from falling energy bills, the relatively small changes didn’t come into effect until February – the 27th to be precise for British Gas customers. By which time, the worst of the winter weather had passed and your energy usage is now falling anyway. What a coincidence.
A GOOD TIME TO SWITCH
Businesses tied into their existing tariff for the foreseeable future unfortunately have little choice in the matter for the next few months. And whilst a reduction in your bills of £30-80 is a nice gesture, it hardly makes a difference to your business costs. However if your tariff is coming up for renewal in the near future, you can enjoy huge reductions by switching energy supplier.
Don’t assume that by sticking with the same supplier you will be given the same or a better tariff upon renewal. By shopping around, you can take advantage of new tariff rates that are far more reflective of the current energy market.
With a fixed plan, you can lock your business into the cheaper energy prices for the coming year. Or, if you’re confident that you could save even more money as prices fall further, you can choose a more flexible plan. Either way, you’ll be able to find a much more affordable tariff for your current business requirements under these new rates.
Whilst the recent moves by the Big Six are anything but generous for UK homes and businesses, they are a step in the right direction. Make sure you know when your business tariff is up for renewal, and act quickly to seize the opportunity to shave hundreds off your utility bills for the coming year.
So after all that debate and information have a think about how this effects you and any changes you can make.
This article is written by Kelly Gilmour Grassam, a freelance copywriter from Yorkshire. You can follow her on Twitter at @KellygGrassam. This article has been written with helpful information from Option Box.