Can you afford to ignore rising wholesale energy costs?

Businesses worried that they’re over paying for gas and electricity should act now ahead of an expected hike in energy bills.

Energy Solicitors Limited (ESL) offers specialist advice to firms that fear they’re the victims of unscrupulous brokers responsible for mis-selling energy contracts.

And after a rise in wholesale energy prices led to a 6.4 per cent increase in the domestic energy price cap, experts insist businesses will be the next to feel the financial pinch.

“When it comes to fluctuating energy prices there’s very little protection for firms,” explains ESL’s Victoria Myers. 

“The last thing your business wants is to be locked into a mis-sold energy contract at the same time as bills go up.

“The money firms might be owed could help to absorb that additional cost — it makes sense to act now and try to offset any future financial stress.”

A bigger than expected increase in wholesale prices from the turn of the year threatens to pile further pressure on already stretched budgets.

And firms nationwide continue to monitor the fallout from the latest increase to the domestic energy price cap.

The closure of the Energy Bill Relief Scheme and its short-lived successor — the Energy Bills Discount Scheme — have hardly helped businesses seeking to contend with gas and electricity price rises.

And Victoria adds: “The single biggest factor influencing business energy bills is the price of wholesale energy. It can often account for more than a third of a firm’s total bill.

“Network costs, operating costs and policies tweaked by central government can all influence pricing. But nothing influences energy bills more than global wholesale prices.

“Supply and demand varies to such a degree and prices can rise and fall very quickly within very short periods of time. Business owners need to do everything they can to future proof their firms and be in a position to cope with these dramatic changes.

“Only the biggest businesses consider purchasing energy through the wholesale market.

“For the rest it’s the retail market. Knowing how to navigate that market is essential — a failure to do so has left business across the UK vulnerable to unscrupulous brokers.

“Without no equivalent to the domestic energy price cap, businesses must protect themselves. That means staying one step ahead of potential price rises and seeking clarity on existing and future contracts.”

ESL remains committed to providing sector-leading legal advice to businesses navigating the murky waters of mis-sold contracts. But the litigation firm’s expertise and knowledge around all things energy is second to none.

And Victoria adds: “All of the noise is around the increase to the domestic energy price cap and there is no direct link to businesses.

“But the common factor is an increase in the wholesale price. That affects firms indirectly in various ways.

“Families will have less money in their pocket if they’re having to set aside more of their monthly income to cover energy bills. Reduced consumer spending hits businesses hard.

“Wholesale energy price rises create added pressure when it comes to operational costs and businesses may well have to reassess plans for future growth.

“And without a business price cap, firms are more exposed to market volatility, making it essential to secure favourable energy contracts to manage expenses.”

To arrange a chat with the ESL team call 0800 059 0122 or  email info@energysolicitors.co.uk