Energy Prices Set for Massive Rise

After announcements by British Gas, the largest energy supplier in the UK, that said they will be raising charges for gas and electricity by an average of 6%, Npower have also declared that they will be raising the price of gas by 8.8% and electricity by 9.1%.

This information comes before winter, a time when energy suppliers obviously face a much higher demand for their fuels. Npower’s chief commercial officer Paul Massara said of the rises: "There is never a good time to increase energy bills, particularly when so many people are working hard to make ends meet".

Not only is this distressing news for household customers who find it difficult to manage energy expenditures, but businesses will also be hit. In particular, small to medium-sized businesses may see an extra strain on their expenses and will find that the large rises will have offset their balance sheets and predicted costs.

The energy firms have both blamed wholesale prices, which have been steadily rising, and government policies relating to the purchasing of gas and electricity products. The cost of falling in line with these policies relating to boost the amount of renewable energy used and providing aid to poorer customers, as well as upgrading the national grid to provide more efficient energy, could add £50 to the average household bill, more for businesses and the rising costs are expected to add another £60 next year.

Some business providers, such as Opus Energy, have made commitments to providing a set and reasonably-priced energy supply in one of the world’s most turbulent and fluctuating energy markets. In fact, Opus Energy provide their small and medium-sized businesses with direct access to the wholesale energy market, a privilege usually reserved for larger corporations. The access can help local businesses to make better savings and minimise risk at a time when the energy market can vary wildly. They also currently purchase their energy from renewable sources meaning that customers avoid the extra cost of companies switching to renewable providers.

Nevertheless, the UK will see the two largest suppliers of gas and electricity raise their prices throughout November, leading to much tougher winters for many household and business owners. For small business owners looking for a better-priced energy supplier, business-only suppliers are available and far more accommodating than larger, general energy suppliers.