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Are you overpaying for your utilities?
Are you overpaying for your utilities?
Once again utility charges are in the headlines.
British Gas recently posted increased profits of £574million or a huge 31% despite cutting prices 3 times this year.
On a domestic basis Ofgem announced that the number of UK households switching their energy provider rose by 15% in 2015, The regulator said that 6.1m gas and electricity accounts had been transferred during the year - about 800,000 more than in 2014.
The news is obviously good but it’s worth pointing out that whilst the big six energy companies have all cut prices for their gas customers this year by at least 5.1%, there have been no reductions to electricity tariffs.
For business tariffs, the past 18 months has seen a drop in oil prices from $115 per barrel to under $35 per barrel. Whilst this price is unlikely to rise dramatically in the short term, costs that suppliers will place on rates charged to the end consumer could well increase.
These “pass through “costs are to cover the cost of renewable energy incentives that will begin in 2016 and are “passed through” direct to clients.
It is therefore a good idea for you to look at when your current contracts expire to see if you can negotiate your new terms ASAP.
Some of the larger companies are offering 5 year fixed tariff deals at the moment which could be very appealing for those businesses that want to fix their costs going forward or expect oil and gas prices to rise in the future.
If you’ve would like a free analysis of your bills or any further information, contact Chorus Business Advisers on 0845 867 1263 or email info@chorusadvisers.co.uk
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