UTILITY UPDATE WITH NATIONWIDE ENERGY
Utility sector update
However, regional military action is only one factor that drives costs as the market continues to respond to influences on energy security. The availability of gas from the North Sea and in particular Norwegian gas fields is a major driver, as are temperatures and a host of other factors that impact global energy security and costs.
Many of these factors remain positive and levels of European gas storage levels are high for the time of year, providing confidence to the market.
This week, despite a significant rise in commodity costs, the average contract rates agreed by customers have reduced. While the risk of prices increasing or decreasing is similar, costs can rise by a far greater margin than they can fall. Therefore operators approaching their contract end should be actively considering their options.
Commodity cost | Av Unit Rate | Av S/C (£) | ||
Electricity | 14/03/2024 | 6.6p | 23p | £2.47 |
12/04/2024 | 7.3p | 24.2p | 77p | |
19/4/2024 | 7.6 | 23.5p | £1.65 | |
Gas | 14/03/2024 | 2.3p | 6p | £1.98 |
12/04/2024 | 2.8p | 6.6p | 74p | |
19/04/2024 | 3p | 6.4p | 90p |
On 5 April, Ofgem announced its decision on non-domestic policy changes. The extension of scope, from micro-businesses to small businesses, to complain about supplier performance via the Energy Ombudsman, provides more operators with the opportunity to challenge suppliers over matters such as time to process a CoT, billing disputes etc. Also set to be introduced is greater transparency on energy cost components including broker commission.
However, we know many pubs continue to receive very poor customer service, excessive charges, inadequate responses to complaints, and are declined supply contracts due to the sector they are in, rather than business-specific reasons. Without clear direction to suppliers on addressing these issues many of the most damaging problems which prompted this review are unlikely to improve significantly.
The energy market in terms of both price and service continues to present many challenges to hospitality businesses. Nationwide Energy’s field consultants and renewals advisors can provide customer-focused advice, a market review, and updates on available prices. Any customers struggling to pay current rates or who are at risk of default can contact our Billing Team for support and advice on their options. Please contact us on:
Tel: 02476 328995
Email: vasb@angvbajvqr-raretl.pb.hx
https://nationwide-energy.co.uk/free-guides-to-help-your-business/
