Market Updates
Market News
Market News
Market News
February 2024
February 2024
27/02/2024
27/02/2024
The JKM front month contract's decline to $7.891/MMBtu, marking a 34-month low, came in contrast to the backdrop of increased buying interest from China for spot cargoes. Qatar, a key player in the global LNG market, has signalled its commitment to production expansion plans. Upwards revisions to LNG production targets indicate their proactive stance in meeting global demand, influencing market sentiments.
The JKM front month contract's decline to $7.891/MMBtu, marking a 34-month low, came in contrast to the backdrop of increased buying interest from China for spot cargoes. Qatar, a key player in the global LNG market, has signalled its commitment to production expansion plans. Upwards revisions to LNG production targets indicate their proactive stance in meeting global demand, influencing market sentiments.
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12/02/2024
12/02/2024
The interplay of various factors contributed to the downward trajectory of energy prices. Power prices closely followed the movements in gas prices, with supply fundamentals remaining robust. European carbon prices also experienced a notable decline, reaching their lowest level since early 2022. This downturn was attributed to bearish indicators and weakened demand, notably affecting the Dec 24 EUA contract.
The interplay of various factors contributed to the downward trajectory of energy prices. Power prices closely followed the movements in gas prices, with supply fundamentals remaining robust. European carbon prices also experienced a notable decline, reaching their lowest level since early 2022. This downturn was attributed to bearish indicators and weakened demand, notably affecting the Dec 24 EUA contract.
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January 2024
January 2024
29/01/2024
29/01/2024
Freeport LNG Terminal Outage: The pivotal factor driving market movements on Friday was the announcement from the Freeport LNG terminal in the U.S. The technical issue leading to the third train being out of service for an estimated month created a ripple effect. Given the typical export volume of 16-19 cargoes a month, the outage potentially impacted an equivalent supply of at least five cargoes, injecting bullish sentiment into the market.
Freeport LNG Terminal Outage: The pivotal factor driving market movements on Friday was the announcement from the Freeport LNG terminal in the U.S. The technical issue leading to the third train being out of service for an estimated month created a ripple effect. Given the typical export volume of 16-19 cargoes a month, the outage potentially impacted an equivalent supply of at least five cargoes, injecting bullish sentiment into the market.
Read More
26/01/2024
26/01/2024
Natural Gas Spot Prices: Spot prices for natural gas experienced a downturn as the forecasted mild weather persisted, contributing to a surplus in supply. The Norwegian shelf played a significant role, exporting nearly 350 million cubic meters per day (mcm/day) to both the UK and Europe. Simultaneously, flows via Velke Kapusany into Slovakia remained stable at 41.5 mcm/day, adding to the overall healthy supply conditions.
Natural Gas Spot Prices: Spot prices for natural gas experienced a downturn as the forecasted mild weather persisted, contributing to a surplus in supply. The Norwegian shelf played a significant role, exporting nearly 350 million cubic meters per day (mcm/day) to both the UK and Europe. Simultaneously, flows via Velke Kapusany into Slovakia remained stable at 41.5 mcm/day, adding to the overall healthy supply conditions.
Read More
22/01/2024
22/01/2024
Natural Gas Spot Contracts: The varied movements in natural gas spot contracts were primarily driven by impending changes in weather conditions. The expectation of a significant rise in temperatures across North West Europe by the weekend's end signaled the conclusion of a cold spell, leading to a decline in demand. Additionally, Storm Isha, with wind speeds of up to 80 mph, battered the UK, providing a boost to wind generation. Forecasts suggested sustained strong wind speeds over the coming weeks, potentially reducing the need for gas burn in electricity generation.
Natural Gas Spot Contracts: The varied movements in natural gas spot contracts were primarily driven by impending changes in weather conditions. The expectation of a significant rise in temperatures across North West Europe by the weekend's end signaled the conclusion of a cold spell, leading to a decline in demand. Additionally, Storm Isha, with wind speeds of up to 80 mph, battered the UK, providing a boost to wind generation. Forecasts suggested sustained strong wind speeds over the coming weeks, potentially reducing the need for gas burn in electricity generation.
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15/01/2024
15/01/2024
Natural Gas Hubs and Colder Weather:
Marginal gains were recorded at the close of Friday's session on the National Balancing Point (NBP) spot and European natural gas hubs.
The colder weather conditions played a role in reshaping market dynamics, contributing to increased demand and subsequently influencing prices in the spot market.
Natural Gas Hubs and Colder Weather:
Marginal gains were recorded at the close of Friday's session on the National Balancing Point (NBP) spot and European natural gas hubs.
The colder weather conditions played a role in reshaping market dynamics, contributing to increased demand and subsequently influencing prices in the spot market.
Read More
04/01/2024
04/01/2024
Colder Temperature Forecasts and Supply Fundamentals: Despite robust supply fundamentals, marked by strong supply, spot prices in the UK and Europe saw an upward shift in response to colder temperature forecasts. The anticipation of colder weather conditions across the continent played a pivotal role in reshaping market dynamics, highlighting the significant impact of weather-driven factors on energy markets.
Colder Temperature Forecasts and Supply Fundamentals: Despite robust supply fundamentals, marked by strong supply, spot prices in the UK and Europe saw an upward shift in response to colder temperature forecasts. The anticipation of colder weather conditions across the continent played a pivotal role in reshaping market dynamics, highlighting the significant impact of weather-driven factors on energy markets.
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December 2023
December 2023
13/12/2023
13/12/2023
The prevailing bearish sentiment persisted in the recent trading session, reflecting a collective decrease in spot and curve prices. This downturn occurred against a backdrop where the fundamental outlook, characterized by various market indicators, remained healthy and displayed a degree of stability.
The prevailing bearish sentiment persisted in the recent trading session, reflecting a collective decrease in spot and curve prices. This downturn occurred against a backdrop where the fundamental outlook, characterized by various market indicators, remained healthy and displayed a degree of stability.
Read More
November 2023
November 2023
30/11/2023
30/11/2023
In a surprising turn of events, yesterday's energy trading session witnessed a notable decline in both UK and European spot prices, catching many market participants off guard. The unexpected bearish movement in spot prices was mirrored in curve prices, attributed to a combination of milder weather forecasts, robust supply, and overall healthy storage conditions.
In a surprising turn of events, yesterday's energy trading session witnessed a notable decline in both UK and European spot prices, catching many market participants off guard. The unexpected bearish movement in spot prices was mirrored in curve prices, attributed to a combination of milder weather forecasts, robust supply, and overall healthy storage conditions.
Read More
28/11/2023
28/11/2023
The recent trading session witnessed a sustained bearish momentum in both the spot European and UK natural gas hubs. Despite weather conditions presenting a mixed picture, with UK temperatures being modestly adjusted upwards from previous forecasts, the extended operation of the Kollesnes processing plant until November 29 provided some support to prices by the session's close. However, the market response to these factors was overshadowed by a notable selloff, as participants reacted to the revised weather outlook.
The recent trading session witnessed a sustained bearish momentum in both the spot European and UK natural gas hubs. Despite weather conditions presenting a mixed picture, with UK temperatures being modestly adjusted upwards from previous forecasts, the extended operation of the Kollesnes processing plant until November 29 provided some support to prices by the session's close. However, the market response to these factors was overshadowed by a notable selloff, as participants reacted to the revised weather outlook.
Read More
27/11/2023
27/11/2023
In the latest session of energy trading, prices experienced a predominantly downward trend, with only a handful of contracts showing resilience by the close on Friday. This movement was observed across both the spot and curve markets. A noteworthy development during this period was an unexpected outage that persisted into Saturday, resulting in a reduction of 15.8 mcm/day and constricting the supply line in the short term. According to Gassco, total exit nominations stood at 339.1 mcm/day, reflecting the impact of this unplanned disruption.
In the latest session of energy trading, prices experienced a predominantly downward trend, with only a handful of contracts showing resilience by the close on Friday. This movement was observed across both the spot and curve markets. A noteworthy development during this period was an unexpected outage that persisted into Saturday, resulting in a reduction of 15.8 mcm/day and constricting the supply line in the short term. According to Gassco, total exit nominations stood at 339.1 mcm/day, reflecting the impact of this unplanned disruption.
Read More
October 2023
October 2023
30/10/2023
30/10/2023
The gas prices in Europe and the UK witnessed an increase on a Monday morning due to a combination of factors. These price fluctuations were primarily driven by significant developments, such as the stoppage of Egyptian gas imports, colder weather conditions, and unplanned outages in Norway. In this essay, we will delve into the details of these factors and their impact on the gas market.
The gas prices in Europe and the UK witnessed an increase on a Monday morning due to a combination of factors. These price fluctuations were primarily driven by significant developments, such as the stoppage of Egyptian gas imports, colder weather conditions, and unplanned outages in Norway. In this essay, we will delve into the details of these factors and their impact on the gas market.
Read More
20/10/2023
20/10/2023
The European and UK wholesale gas markets experienced a notable upswing in prices on a particular Wednesday morning. The catalyst behind this surge was growing concern that the Israel-Hamas conflict might escalate further. The tragic incident at a Gaza hospital, resulting in the loss of hundreds of lives, cast a shadow over these markets, prompting investors and gas traders to reassess their positions.
The European and UK wholesale gas markets experienced a notable upswing in prices on a particular Wednesday morning. The catalyst behind this surge was growing concern that the Israel-Hamas conflict might escalate further. The tragic incident at a Gaza hospital, resulting in the loss of hundreds of lives, cast a shadow over these markets, prompting investors and gas traders to reassess their positions.
Read More
Frequently Asked Questions
Why choose Choice Utility for comparing business energy?
High business energy bills can significantly impact your business's operating costs. At Choice Utility, we understand the importance of keeping costs down, and that's why we offer a hassle-free business energy comparison service. Comparing business energy rates can be a daunting task, especially when dealing with multiple suppliers for both gas and electricity. However, with Choice Utility, you can leave the hard work to us. By simply providing your business name and postcode, our smart data-driven approach allows us to gather all the necessary information from our trusted panel of suppliers, saving you time on tedious form-filling. Our technology-enabled experts will then present you with a comprehensive list of the best business gas and electricity deals, explained during a quick screen-share call. Once you've made your decision, we take care of the entire switching process for you, ensuring a seamless transition to your chosen plan. Moreover, our commitment doesn't end there. As your current contract nears its end, we proactively search for the best rates, eliminating the worries of renewals and preventing you from overpaying for business energy. For large businesses with high energy demand, our dedicated team is here to assist you in making the switch and saving money. At Choice Utility, we strive to provide the best solutions tailored to your business energy needs.
How much can my business save by switching energy providers to Choice Utility?
The potential savings when you switch to Choice Utility can vary based on several factors. These include the specific energy plan you choose, your business's energy consumption patterns, and the size and location of your business. The rates available on the day you sign your new contract will also impact your potential savings. While you can sign a new contract up to 11 months before your current one ends, the new rates will only take effect once your current contract expires. By considering these factors and selecting the most suitable energy plan, your business can maximize its savings with Choice Utility.
Are there any price caps on business energy rates?
Unlike residential energy, there is no price cap on business energy rates. However, the government offers various discount schemes for businesses in the utility industry. One such scheme is the Energy Price Relief Scheme (EBRS), which provided discounted energy rates to businesses for a six-month period from October 1, 2022, to March 31, 2023. This has now been replaced by the Energy Bills Discount Scheme (EBDS), effective from April 1, 2023, to March 31, 2024. The Energy Bills Discount Scheme is applicable to businesses on fixed-price contracts signed on or after December 1, 2021, as well as deemed and out-of-contract rates. Please note that the discount is subject to a minimum threshold. The level of discount you receive under EBDS will depend on your contracted rates, and while the scheme is in effect, your bills will be reduced accordingly. It's important to be aware that the discounted rates will not fall below 30.2p for electricity and 10.7p for gas. For more detailed information, feel free to refer to our comprehensive guide on the Energy Bills Discount Scheme.
What types of business energy deals does Choice Utility offer?
Business energy plans are subject to frequent fluctuations in prices. To ensure you secure the best deal, it's essential to compare various options and consider switching. By taking advantage of your switching window and promptly signing up for a new plan, you can lock in favourable rates and stay ahead of potential energy price increases.
What does "deemed contract" mean in the business utility industry?
A deemed contract is a type of energy agreement utilized by suppliers for businesses that have reached the end of their energy contract without either switching suppliers or renewing their contract with their current supplier. By being on a deemed contract, businesses typically face the highest rates charged by suppliers, resulting in less competitive prices within the energy market. To avoid overpaying for energy, it is advisable to switch to a new contract before the current one expires. This ensures better control over energy costs and more favourable terms for the business.
What does the term "Letter of Authority (LOA)" mean in the business utility industry?
A Letter of Authority (LOA) is a vital document used when comparing and switching business energy prices through brokers, comparison sites, or third-party intermediaries (TPIs). It is a legally recognized document, adhering to a standardized format, which grants permission for a third party to gather information, negotiate, and initiate the termination process with your current energy supplier on your behalf. However, the LOA explicitly states that this third party cannot agree to a new energy contract without your explicit consent. At Choice Utility, when you choose to switch with us, signing the Letter of Authority affirms that you have granted us the authority to handle the switching process with both your existing and new energy suppliers. It's important to note that we cannot finalize a new contract until you have officially signed the LOA, ensuring that you maintain complete control over the entire switching process.
What details are required for switching my business energy supplier?
At Choice Utility, our smart data-driven approach simplifies the process of switching to a more cost-effective energy plan. All we need to kickstart a business energy comparison is your postcode. With this information, we'll handle the entire switching process for you, and manage your renewals, ensuring you never pay more than necessary for your energy needs.
How long does the business energy supplier switch process take?
Faster switching enables us to now switch businesses energy deals in 5 days. However, the duration depends on your current contract's expiration date. Even if you agree on new rates before your contract ends, the switch will only occur after the current deal has expired. For non-domestic energy deals, you can only enter a new contract when your current one is up for renewal. This renewal period can occur up to twelve months before the contract's end date, so it's essential to keep track of the dates. With our experienced team, we can handle this process on your behalf, ensuring a seamless transition.
Will my business operations experience any disruptions during the supplier switch?
Rest assured, switching suppliers in the business utility industry is typically a seamless process with minimal disruption to your operations. Your business will smoothly transition to the new supplier, and you won't encounter any service interruptions. Moreover, there's no need to be concerned about installations at your premises, as the new provider will utilize the existing infrastructure, including pipes and cables, from your previous supplier. This ensures a hassle-free and efficient switch to the new energy supplier for your business.
How does my energy contract get affected when I relocate my business premises?
When you move to a new business location, your energy contract can take one of two routes. It will either be transferred to the new property, ensuring a seamless transition, or it might be cancelled. If cancellation occurs, you could end up on a costly 'deemed rates' contract with the existing supplier at the new premises. To avoid this situation, it is essential to set up a new energy deal as promptly as possible. For further information and guidance on managing your business energy during relocation, please refer to our comprehensive guide.
Is a business energy contract necessary for home-based work?
When you operate from home, even as a sole trader, you might be eligible for a business energy deal. While it's not mandatory to have a business contract, opting for one can lead to cost savings through cheaper business rates obtained via a commercial gas and business electricity comparison. To qualify for a commercial business contract, you must demonstrate that you work from home and that over 50% of the energy used there is for business purposes. This requirement may seem substantial, but simply utilizing heating and lighting during your daily business activities can often satisfy the threshold. However, it's important to subtract the power consumed by appliances that would be running regardless of your business, such as fridges and freezers. For further information and guidance on managing your business energy during relocation, please refer to our comprehensive guide.
Can I change my energy provider as a large or industrial business?
Absolutely! If your industrial or large business consumes more than 55,000 kWh of electricity or 200,000 kWh of gas annually, or if it uses a half-hourly meter, you are considered a large business user in the energy industry. At Choice Utility, we specialize in catering to the needs of large businesses like yours. Our dedicated team offers a personalized procurement and bill validation service to ensure you get the best energy deals available. For more information, check out our comprehensive guide to industrial and large business energy solutions.
What are multi-site meters?
Multi-site meters are utility meters used by businesses with high energy consumption that require multiple meters for gas and electricity. These businesses often operate across several locations, leading to multiple energy contracts with various suppliers, each having different contract end dates. By opting for a multi-site energy contract, businesses can streamline their billing processes as it covers multiple meters, whether at a single business premises or across multiple sites. This approach can save both time and money for the business. To learn more about multi-site energy and its benefits, refer to our comprehensive guide on the subject.
Frequently Asked Questions
Why choose Choice Utility for comparing business energy?
High business energy bills can significantly impact your business's operating costs. At Choice Utility, we understand the importance of keeping costs down, and that's why we offer a hassle-free business energy comparison service. Comparing business energy rates can be a daunting task, especially when dealing with multiple suppliers for both gas and electricity. However, with Choice Utility, you can leave the hard work to us. By simply providing your business name and postcode, our smart data-driven approach allows us to gather all the necessary information from our trusted panel of suppliers, saving you time on tedious form-filling. Our technology-enabled experts will then present you with a comprehensive list of the best business gas and electricity deals, explained during a quick screen-share call. Once you've made your decision, we take care of the entire switching process for you, ensuring a seamless transition to your chosen plan. Moreover, our commitment doesn't end there. As your current contract nears its end, we proactively search for the best rates, eliminating the worries of renewals and preventing you from overpaying for business energy. For large businesses with high energy demand, our dedicated team is here to assist you in making the switch and saving money. At Choice Utility, we strive to provide the best solutions tailored to your business energy needs.
How much can my business save by switching energy providers to Choice Utility?
The potential savings when you switch to Choice Utility can vary based on several factors. These include the specific energy plan you choose, your business's energy consumption patterns, and the size and location of your business. The rates available on the day you sign your new contract will also impact your potential savings. While you can sign a new contract up to 11 months before your current one ends, the new rates will only take effect once your current contract expires. By considering these factors and selecting the most suitable energy plan, your business can maximize its savings with Choice Utility.
Are there any price caps on business energy rates?
Unlike residential energy, there is no price cap on business energy rates. However, the government offers various discount schemes for businesses in the utility industry. One such scheme is the Energy Price Relief Scheme (EBRS), which provided discounted energy rates to businesses for a six-month period from October 1, 2022, to March 31, 2023. This has now been replaced by the Energy Bills Discount Scheme (EBDS), effective from April 1, 2023, to March 31, 2024. The Energy Bills Discount Scheme is applicable to businesses on fixed-price contracts signed on or after December 1, 2021, as well as deemed and out-of-contract rates. Please note that the discount is subject to a minimum threshold. The level of discount you receive under EBDS will depend on your contracted rates, and while the scheme is in effect, your bills will be reduced accordingly. It's important to be aware that the discounted rates will not fall below 30.2p for electricity and 10.7p for gas. For more detailed information, feel free to refer to our comprehensive guide on the Energy Bills Discount Scheme.
What types of business energy deals does Choice Utility offer?
Business energy plans are subject to frequent fluctuations in prices. To ensure you secure the best deal, it's essential to compare various options and consider switching. By taking advantage of your switching window and promptly signing up for a new plan, you can lock in favourable rates and stay ahead of potential energy price increases.
What does "deemed contract" mean in the business utility industry?
A deemed contract is a type of energy agreement utilized by suppliers for businesses that have reached the end of their energy contract without either switching suppliers or renewing their contract with their current supplier. By being on a deemed contract, businesses typically face the highest rates charged by suppliers, resulting in less competitive prices within the energy market. To avoid overpaying for energy, it is advisable to switch to a new contract before the current one expires. This ensures better control over energy costs and more favourable terms for the business.
What does the term "Letter of Authority (LOA)" mean in the business utility industry?
A Letter of Authority (LOA) is a vital document used when comparing and switching business energy prices through brokers, comparison sites, or third-party intermediaries (TPIs). It is a legally recognized document, adhering to a standardized format, which grants permission for a third party to gather information, negotiate, and initiate the termination process with your current energy supplier on your behalf. However, the LOA explicitly states that this third party cannot agree to a new energy contract without your explicit consent. At Choice Utility, when you choose to switch with us, signing the Letter of Authority affirms that you have granted us the authority to handle the switching process with both your existing and new energy suppliers. It's important to note that we cannot finalize a new contract until you have officially signed the LOA, ensuring that you maintain complete control over the entire switching process.
What details are required for switching my business energy supplier?
At Choice Utility, our smart data-driven approach simplifies the process of switching to a more cost-effective energy plan. All we need to kickstart a business energy comparison is your postcode. With this information, we'll handle the entire switching process for you, and manage your renewals, ensuring you never pay more than necessary for your energy needs.
How long does the business energy supplier switch process take?
Faster switching enables us to now switch businesses energy deals in 5 days. However, the duration depends on your current contract's expiration date. Even if you agree on new rates before your contract ends, the switch will only occur after the current deal has expired. For non-domestic energy deals, you can only enter a new contract when your current one is up for renewal. This renewal period can occur up to twelve months before the contract's end date, so it's essential to keep track of the dates. With our experienced team, we can handle this process on your behalf, ensuring a seamless transition.
Will my business operations experience any disruptions during the supplier switch?
Rest assured, switching suppliers in the business utility industry is typically a seamless process with minimal disruption to your operations. Your business will smoothly transition to the new supplier, and you won't encounter any service interruptions. Moreover, there's no need to be concerned about installations at your premises, as the new provider will utilize the existing infrastructure, including pipes and cables, from your previous supplier. This ensures a hassle-free and efficient switch to the new energy supplier for your business.
How does my energy contract get affected when I relocate my business premises?
When you move to a new business location, your energy contract can take one of two routes. It will either be transferred to the new property, ensuring a seamless transition, or it might be cancelled. If cancellation occurs, you could end up on a costly 'deemed rates' contract with the existing supplier at the new premises. To avoid this situation, it is essential to set up a new energy deal as promptly as possible. For further information and guidance on managing your business energy during relocation, please refer to our comprehensive guide.
Is a business energy contract necessary for home-based work?
When you operate from home, even as a sole trader, you might be eligible for a business energy deal. While it's not mandatory to have a business contract, opting for one can lead to cost savings through cheaper business rates obtained via a commercial gas and business electricity comparison. To qualify for a commercial business contract, you must demonstrate that you work from home and that over 50% of the energy used there is for business purposes. This requirement may seem substantial, but simply utilizing heating and lighting during your daily business activities can often satisfy the threshold. However, it's important to subtract the power consumed by appliances that would be running regardless of your business, such as fridges and freezers. For further information and guidance on managing your business energy during relocation, please refer to our comprehensive guide.
Can I change my energy provider as a large or industrial business?
Absolutely! If your industrial or large business consumes more than 55,000 kWh of electricity or 200,000 kWh of gas annually, or if it uses a half-hourly meter, you are considered a large business user in the energy industry. At Choice Utility, we specialize in catering to the needs of large businesses like yours. Our dedicated team offers a personalized procurement and bill validation service to ensure you get the best energy deals available. For more information, check out our comprehensive guide to industrial and large business energy solutions.
What are multi-site meters?
Multi-site meters are utility meters used by businesses with high energy consumption that require multiple meters for gas and electricity. These businesses often operate across several locations, leading to multiple energy contracts with various suppliers, each having different contract end dates. By opting for a multi-site energy contract, businesses can streamline their billing processes as it covers multiple meters, whether at a single business premises or across multiple sites. This approach can save both time and money for the business. To learn more about multi-site energy and its benefits, refer to our comprehensive guide on the subject.
Frequently Asked Questions
Why choose Choice Utility for comparing business energy?
High business energy bills can significantly impact your business's operating costs. At Choice Utility, we understand the importance of keeping costs down, and that's why we offer a hassle-free business energy comparison service. Comparing business energy rates can be a daunting task, especially when dealing with multiple suppliers for both gas and electricity. However, with Choice Utility, you can leave the hard work to us. By simply providing your business name and postcode, our smart data-driven approach allows us to gather all the necessary information from our trusted panel of suppliers, saving you time on tedious form-filling. Our technology-enabled experts will then present you with a comprehensive list of the best business gas and electricity deals, explained during a quick screen-share call. Once you've made your decision, we take care of the entire switching process for you, ensuring a seamless transition to your chosen plan. Moreover, our commitment doesn't end there. As your current contract nears its end, we proactively search for the best rates, eliminating the worries of renewals and preventing you from overpaying for business energy. For large businesses with high energy demand, our dedicated team is here to assist you in making the switch and saving money. At Choice Utility, we strive to provide the best solutions tailored to your business energy needs.
How much can my business save by switching energy providers to Choice Utility?
The potential savings when you switch to Choice Utility can vary based on several factors. These include the specific energy plan you choose, your business's energy consumption patterns, and the size and location of your business. The rates available on the day you sign your new contract will also impact your potential savings. While you can sign a new contract up to 11 months before your current one ends, the new rates will only take effect once your current contract expires. By considering these factors and selecting the most suitable energy plan, your business can maximize its savings with Choice Utility.
Are there any price caps on business energy rates?
Unlike residential energy, there is no price cap on business energy rates. However, the government offers various discount schemes for businesses in the utility industry. One such scheme is the Energy Price Relief Scheme (EBRS), which provided discounted energy rates to businesses for a six-month period from October 1, 2022, to March 31, 2023. This has now been replaced by the Energy Bills Discount Scheme (EBDS), effective from April 1, 2023, to March 31, 2024. The Energy Bills Discount Scheme is applicable to businesses on fixed-price contracts signed on or after December 1, 2021, as well as deemed and out-of-contract rates. Please note that the discount is subject to a minimum threshold. The level of discount you receive under EBDS will depend on your contracted rates, and while the scheme is in effect, your bills will be reduced accordingly. It's important to be aware that the discounted rates will not fall below 30.2p for electricity and 10.7p for gas. For more detailed information, feel free to refer to our comprehensive guide on the Energy Bills Discount Scheme.
What types of business energy deals does Choice Utility offer?
Business energy plans are subject to frequent fluctuations in prices. To ensure you secure the best deal, it's essential to compare various options and consider switching. By taking advantage of your switching window and promptly signing up for a new plan, you can lock in favourable rates and stay ahead of potential energy price increases.
What does "deemed contract" mean in the business utility industry?
A deemed contract is a type of energy agreement utilized by suppliers for businesses that have reached the end of their energy contract without either switching suppliers or renewing their contract with their current supplier. By being on a deemed contract, businesses typically face the highest rates charged by suppliers, resulting in less competitive prices within the energy market. To avoid overpaying for energy, it is advisable to switch to a new contract before the current one expires. This ensures better control over energy costs and more favourable terms for the business.
What does the term "Letter of Authority (LOA)" mean in the business utility industry?
A Letter of Authority (LOA) is a vital document used when comparing and switching business energy prices through brokers, comparison sites, or third-party intermediaries (TPIs). It is a legally recognized document, adhering to a standardized format, which grants permission for a third party to gather information, negotiate, and initiate the termination process with your current energy supplier on your behalf. However, the LOA explicitly states that this third party cannot agree to a new energy contract without your explicit consent. At Choice Utility, when you choose to switch with us, signing the Letter of Authority affirms that you have granted us the authority to handle the switching process with both your existing and new energy suppliers. It's important to note that we cannot finalize a new contract until you have officially signed the LOA, ensuring that you maintain complete control over the entire switching process.
What details are required for switching my business energy supplier?
At Choice Utility, our smart data-driven approach simplifies the process of switching to a more cost-effective energy plan. All we need to kickstart a business energy comparison is your postcode. With this information, we'll handle the entire switching process for you, and manage your renewals, ensuring you never pay more than necessary for your energy needs.
How long does the business energy supplier switch process take?
Faster switching enables us to now switch businesses energy deals in 5 days. However, the duration depends on your current contract's expiration date. Even if you agree on new rates before your contract ends, the switch will only occur after the current deal has expired. For non-domestic energy deals, you can only enter a new contract when your current one is up for renewal. This renewal period can occur up to twelve months before the contract's end date, so it's essential to keep track of the dates. With our experienced team, we can handle this process on your behalf, ensuring a seamless transition.
Will my business operations experience any disruptions during the supplier switch?
Rest assured, switching suppliers in the business utility industry is typically a seamless process with minimal disruption to your operations. Your business will smoothly transition to the new supplier, and you won't encounter any service interruptions. Moreover, there's no need to be concerned about installations at your premises, as the new provider will utilize the existing infrastructure, including pipes and cables, from your previous supplier. This ensures a hassle-free and efficient switch to the new energy supplier for your business.
How does my energy contract get affected when I relocate my business premises?
When you move to a new business location, your energy contract can take one of two routes. It will either be transferred to the new property, ensuring a seamless transition, or it might be cancelled. If cancellation occurs, you could end up on a costly 'deemed rates' contract with the existing supplier at the new premises. To avoid this situation, it is essential to set up a new energy deal as promptly as possible. For further information and guidance on managing your business energy during relocation, please refer to our comprehensive guide.
Is a business energy contract necessary for home-based work?
When you operate from home, even as a sole trader, you might be eligible for a business energy deal. While it's not mandatory to have a business contract, opting for one can lead to cost savings through cheaper business rates obtained via a commercial gas and business electricity comparison. To qualify for a commercial business contract, you must demonstrate that you work from home and that over 50% of the energy used there is for business purposes. This requirement may seem substantial, but simply utilizing heating and lighting during your daily business activities can often satisfy the threshold. However, it's important to subtract the power consumed by appliances that would be running regardless of your business, such as fridges and freezers. For further information and guidance on managing your business energy during relocation, please refer to our comprehensive guide.
Can I change my energy provider as a large or industrial business?
Absolutely! If your industrial or large business consumes more than 55,000 kWh of electricity or 200,000 kWh of gas annually, or if it uses a half-hourly meter, you are considered a large business user in the energy industry. At Choice Utility, we specialize in catering to the needs of large businesses like yours. Our dedicated team offers a personalized procurement and bill validation service to ensure you get the best energy deals available. For more information, check out our comprehensive guide to industrial and large business energy solutions.
What are multi-site meters?
Multi-site meters are utility meters used by businesses with high energy consumption that require multiple meters for gas and electricity. These businesses often operate across several locations, leading to multiple energy contracts with various suppliers, each having different contract end dates. By opting for a multi-site energy contract, businesses can streamline their billing processes as it covers multiple meters, whether at a single business premises or across multiple sites. This approach can save both time and money for the business. To learn more about multi-site energy and its benefits, refer to our comprehensive guide on the subject.