Getting the cheapest business energy for electricity and gas is just 60 seconds away. The main electricity suppliers in the UK can all provide online quotes no matter what size of business you run from a small business to a large commercial organisation.
Comparing business electricity suppliers online
You can make massive savings on your business energy by switching your supply from your current energy provider to another. In a deregulated market, simply getting up to date rates and prices for the cheapest tariffs should also lower bills. Your energy supply will not be interrupted during the switching process and if you manage your account online and pay by monthly Direct Debit you can get cheaper rates as well.
Switch and reduce costs
If you just stay with your current supplier and not renegotiate your contract, then your prices are likely to increase as you'll enter into a rollover contract. You must get new rates each year even if you want to stay with your current energy company.
Just by getting a quote, you'll get the best prices and nearly always the cheapest rates are available online. You can also use business comparison websites that will show you the big six energy companies tariffs side by side or simply go to each website in turn for an online quote.
By doing this, you can save thousands of pounds in electric and gas costs each year - just for a few minutes online.
A Note About Average kWh Prices Since Deregulation
Since the deregulation of the Energy Industry in the UK in the late 1990s, energy prices have become dependent on the global supply market. UK business energy prices use a traded market position, which was not the case before 1998, when monopolies existed in energy supply.
The UK government still has an important role in meeting the energy demand of business despite the deregulation, and with its watchdog bodies, such as OFGEM and Energywatch, plays a part in regulating energy prices.
The UK is not only a consumer of energy but is also a producer. In 2006, the UK was the world's ninth-largest consumer of energy and the 15th largest producer. In 2007, the UK had a total energy output of 9.5 quadrillion BTUs (British Thermal Units) from oil, natural gas, coal nuclear and renewables. Production has declined over recent years, and the UK is now a net importer of energy, making the country more susceptible to price fluctuations in the market.
The Fluctuation of Energy Prices
With market forces now in play in the energy market, the price of energy supplied to UK markets is more volatile and has fluctuated over the last ten years, but with an upward trend.
The amount your business pays for energy will depend on the fuel you use, your bargaining power as a user, the length of your contract with your supplier and external factors such as crude oil prices.
Fluctuations in the price of crude oil affect the prices of domestic and industrial fuels in the UK. The price of crude oil changes for a variety of reasons including:
- Oil shortages (1973).
- Political instability (1990/1).
- Over-supply and weaker Far East demand (1998).
- Natural disasters such as Hurricane Katrina (2005).
- Geopolitical tensions and a weak dollar (2007/8 and 2013/4).
In July 2008, average monthly crude oil prices hit a new high, 10.5% higher than in the late 1970's. By January 2009, oil prices had dropped back to around $40/barrel due to concerns over poor global economic performance following the recession but by June 2009, prices had increased again to around $70/barrel. These changes were due to militant action and supply concerns in Nigeria and indications of an increase in demand in the US and China.
Global changes saw a 50% reduction in oil prices towards the end of 2014.
Average Prices 1999 - 2014 for non-domestic users
Average coal prices increased each year between 1999 and 2005, with the exception of a fall in 2003. Prices fell again in 2006 but increased in 2007 and went up even more in 2008.
Average oil prices have increased every year from 2001 onwards.
Average gas oil prices have risen in each year since 1999, with the exception of a fall in 2002.
Average electricity prices fell between 1999 and 2003, rose again over the period 2004 to 2006, fell in 2007, and have risen once more in 2008.
Average gas prices rose between 1999 and 2006, with the exception of a fall in 2002, then fell in 2007, and have risen once more in 2008.
During 2012 to 2014, prices have stabled and even fallen. Many companies now opt for three and five-year deals to lock in long-term savings.