Energy cost

Are energy cost savings a thing of the past?

When was the last time you saw a headline reporting something was getting cheaper or easier for UK businesses?  It has certainly been a while.

Political, environmental and economic uncertainty are wreaking havoc with business owners’ long-term plans and forcing everyone to hedge their bets with strategic decisions.

Brexit’s weakening of Sterling (the pound is now worth 14 per cent less than on the eve of the referendum) and various associated pressures, such as a lack of skilled workers and the worst run of business investment since the financial crisis, are driving variable business costs up across the board; not least energy prices.  Those businesses who are able to develop some protection with price increases and changes to terms and conditions are already doing so.

Energy Cost

Energy Cost

The wholesale price of gas and electricity is forecasted to continue rising throughout 2019.  Limited gas storage in Europe, increase distribution and transmission costs and the political factors mentioned above are pushing prices ever-higher.

So, can we wave goodbye to getting better deals?

Comparing today’s prices with those even as recently as 12 months ago reveals a startling leap.  Due to this, it’s simply not possible for suppliers to offer the same prices they did when the market was cheaper because they’ve paid more for the energy themselves.  In addition to this, the cost of transmitting and distributing energy around the country is also rising.

You can still save money.

What this means in practice is that quality energy brokerage has become even more important. It’s now essential to interrogate the market to deliver savings against your current supplier’s renewal price, more so than ever. Because of the current nature of electricity and gas, you need to be sure that the new price you’re offered is the best possible. With suppliers being squeezed on profits as much as your business, they will try to widen their margins on apathetic customers who don’t switch regularly. Who could blame them?

The opportunities to save on your energy costs are becoming harder to find. They may be hidden in the minutiae of contracts, but they still exist and can be exploited by someone with the right knowledge of the industry.

At Great Annual Savings Group, we manage hundreds of millions of pounds of procurement for these suppliers, giving us leverage to call in favourable terms to help our customers wherever possible.
If you have received a renewal and want to know whether it’s a good deal, get in touch for a free assessment. Despite the rising market, don’t lose hope; there are still ways to ensure you’re on the best deal possible.

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Paul JohnsonGroup Financial Director

Paul Johnson is very much a home-grown talent.

He joined Great Annual Savings Group in its infancy, fresh from a youth career as a professional footballer with Hartlepool United.  He quickly established a reputation within the business and aced all required accountancy qualifications in the space of four years to become the Group’s Management Accountant.

Several successful projects later, Paul was promoted to Head of Finance.  When the former FD left GAS, he took on the mantle of the business’ most senior finance professional; boasting a string of incredible achievements all under the age of 30.

Quote:

“I have witnessed phenomenal growth at the Group over the many years I’ve worked here and I’m looking forward to guiding the Group into an exciting new chapter.”

Interesting fact:

Paul made his professional debut for Hartlepool United against Bournemouth in the Football League.  Some say Danny Ings still resides in his pocket to this day.

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