The traditional winter pricing curve for energy has taken a serious downward turn over the last few months due to the UK’s mild winter weather and the bear market for US oil. Today’s energy prices are the lowest for 5 years.
NOW is the time to seriously look at renewing your future energy supply contracts at today’s lower rates and you do not have to wait until your current energy contract renewal date is close by.
We have already placed energy supply contracts at today’s record low rates for our hospitality clients with start dates as far as ahead as 2018. Yes that’s right you can buy now and fix your future costs.
Q. “How does this help me now?”
A. It gives you projected savings against your energy current costs, peace of mind in knowing that your energy costs will be much lower on your next contract renewal date and secures your future energy costs against the inevitable rises to come.
And they are inevitable, because when it comes to any market traded commodity, “What goes down MUST eventually go back up!”
Another reason why energy costs will eventually rise is down to how energy costs are made up.
Non commodity or 3rd party charges made up an astonishing 48% of energy costs during 2015 and are projected to account for over 50% in 2016 and over 60% by 2019!
These non Commodity/ 3rd party charges are mainly the supply network and renewable energy generation costs passed through the supplier to the end user.
The funding of renewable energy and low carbon initiatives along with infrastructure enhancements to support renewable energy generation are the main drivers of these increases.
This year we will see non commodity/3rd party charges such as RO (Renewable Obligation), FiT (Feed in Tariff) and EMR (Energy Market Reform) account for 18% of energy costs.
So, even if the actual cost of the energy stays the same, the non commodity/3rd party charges will inevitably increase the price of energy.
We know the network charges will go up and for non-energy specialists these can seem like quite complex issues, so talk with us and we can de mystify them for you and save you money.
0845 489 10 11
Repton Manor, Repton Avenue, Ashford, TN23 3GP
We met up with Maud Rebillet-Bergeon, Commercial Director at Hotel Energy to learn about Hotel Energy and the work they do saving energy for their customer’s in the hospitality and catering industry. The interview feature can be seen here.
In another feature – Energy Explained, Top 10 Energy and Money Saving Tips – Hotel Energy highlight ten easy ways for most in the hospitality and catering industry to save on their energy costs.