business

Gas prices are steadily rising in the UK

Gas burner
Written by Nigel Simpkins

Back in February 2019, the Ofgem price hike was all over the news, but six odd months later, the prices have not come down since. As it happens, the price of business gas in particular is continuing to rise at a steady pace every year, if not much sooner. It doesn’t make as much noise as it did, because the commercial sector is almost used to it by now, which isn’t an ideal situation for the economy.

Taking a Look Back at Exactly What Happened in February

The price of gas in general rose for everybody, including households, and affected more than 15 million homes in the UK. Pre-payment meter customers now had their caps reset at £1,242 annually, which meant an increase of £106 on the previous cap of £1136. Ofgem customers now had to pay anything between £75 – £100 extra per year for gas, starting from April 1st.

The Increase in Gas Prices is a Constant Occurrence

It should be noted that constant price hikes are not at all a new phenomenon in the British energy industry. The price hike in February was not received well, particularly due to the fact that the gas prices had gone up just months before in August 2018. Unfortunate as it is, there isn’t much that the government can do to lower the price of gas or electricity, because it’s just the way the economy is working right now.

The Commercial Sector Often Pays the Most Premium for Each Hike

Businesses pay more for gas as it is, but in order to make decent profits and remain in business, every time the price of gas goes up, they must in turn increase the price of their products as well. The same goes for electricity as well. This creates a dilemma for them. Due to the unavailability of cheap business gas and electricity, they have to choose between cutting their profits, or losing a number of customers, both of which boil down to the same outcome, with minute differences. There is some good news though, because it is still possible to pay a comparatively cheaper rate in most situations, through negotiation.

It is Still Possible to Get Cheap Business Gas and Electricity?

Fluctuations in energy are unavoidable at this point in time, but mostly, the fluctuation has taken the form of inflation in the last year or so. However, smaller companies can still get comparatively cheap business gas and electricity, if they are willing to take the time to compare the options they have at their disposal and switch business gas suppliers. Sites like Utility Bidder are designed to make the constantly growing energy expenses of small businesses relatively affordable. They allow the customers to find the cheap business gas and electricity that they need, by comparing quotes from various energy providers across UK.

As of now, it is unclear when the price of gas and electricity will change again, but it may be much sooner than we think. Unfortunately, the change will almost assuredly mean higher prices, instead of seeing any decrease in energy costs.