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Are Gas Prices Set to Drop

Earlier this year, a global abundance of gas forced down the price of the fuel. This was not only lower than anticipated, but also came in at the lowest price levels seen in over a decade.

Since then it doesn’t appear that this drop in supplier price has been passed on to businesses and consumers. The wholesale cost has dropped to 2005 prices, whilst the average bill has remained the same for the last two years.

However, things look as though they are starting to change, with standard tariffs set to fall even if not as fast as customers may like. This means there has never been a deaggregation of gas suppliesbetter time to change supplier and negotiate the best deal for your business.

Although the wholesale cost of gas has fallen, this only makes up for around half the price of what you pay in your energy bill, so don’t expect to be paying exactly the same as 2005 prices to heat your office! Things like VAT and the transportation of gas also have to come into consideration, so whilst there will be drops, it won’t be as drastic as you may think.

In contrast to this, after a good few months of wholesale price freefall, UK gas and power prices have seen a surge this month. This follows on from the closure of the UK’s largest gas storage site, Rough. The closure isn’t permanent, but the site will stop injections or withdrawals of gas for at least 6 weeks while wells are tested. So, this could have an impact on Winter 2016 prices as there’s a risk that the site may not be full in time to carry us through a British winter.

The big question is – could you be making savings on your energy bills as a result of this news? If you haven’t changed supplier in a while, the chances are you’re already paying over the odds, without taking new price adjustments into consideration.flame-580342_1920

Why not undertake an energy audit to find out how much you could reduce your gas costs? Many businesses find that contacting energy companies can be time consuming, but at Business Cost Consultants, we have a team of experts readily available to carry out an audit and negotiate an energy deal which works specifically for your business needs. Our aim is simple – to save on your time, effort and costs so you can focus your productive efforts elsewhere in the business. Our audits are absolutely free and if we find that we can’t offer you significant savings, you are free to walk away with no obligation.

For more information about our energy audits or any other services, get in touch here or give us a call on 0141 226 8525.

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