Energy commodity markets might be hard to forecast, but with our new five-year fixed term contract, your energy costs don’t have to be.
When we talk to our customers, one concern comes up time and time again: how to budget long term energy costs in a highly fluctuating energy market.
Forecasting future energy prices is no easy task for the market experts, let alone customers who have their own businesses to run! At their core, market prices are driven by supply and demand. But when you consider the factors driving these, it quickly becomes a much more complex picture to forecast. These factors include increased electrification, the move to more intermittent sources of generation and the impact of the weather… to name a few. When you consider that we import both gas and power from overseas, it isn’t just about monitoring these many drivers at a GB market level but across the global energy markets. And this introduces political conditions and global exchange rates to the mix.
As an example, over the past year we have seen power prices for this winter rise by nearly 60%. This was largely driven by high summer prices caused by still weather conditions and therefore low renewable generation output, in conjunction with high gas market prices. These factors have a consequence on the winter prices, for example, as storage facilities will have struggled to fill with cheaper summer fuel. While further out commodity prices are increasing more steadily, how they will be impacted by the various driving factors in the coming months and years remains to be seen.
Unfortunately, all too often, we see businesses feeling the direct impact of this instability. 61% of businesses view energy as a significant cost, according to the Federation of Small Business, and we appreciate this can add to the challenges of the day to day running of your business. The good news is that there are ways we can help.
As a trusted energy partner, we’ve listened to what our customers have been saying and, as a result, have extended the maximum duration of our fixed term SSE Choice contracts. We want to use our expertise in these complex markets to provide you with the certainty you need to drive your business forward. This means that you can now sign up to an SSE Choice tariff for five years.
In a dynamic, fast-paced world, we hope this can bring much needed piece of mind by providing the option to fix your energy tariff and spread resulting energy costs over a longer duration. By providing increased budget certainty at a time when prices are subject to frequent fluctuations, we’re freeing organisations from the burden of energy cost management and letting them focus on what they do best – running their business and delighting their customers.
If you’re looking for further ways to reduce and manage your energy costs, we also offer a range of tools and services including platforms to help you visualise the energy you are using, energy optimisation services and demand side response contracts via our Virtual Power Plant.
Take a look at our website to find out more, or if you’re an existing customer, contact your account manager.
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