THE UK’s leading business energy price comparison and switching service for business has urged firms to be cautious amid reports of business electricity prices and business gas tariffs falling in 2012.
Julian Morgan, managing director of the Energy Advice Line, said despite reports that energy prices could be slashed as part of a supplier price war, business energy users should remain vigilant in a volatile energy market.
Recent reports have suggested that due to the mild winter, energy companies have abundant supplies of gas and therefore could afford to cut retail energy prices by as much as 10%.
Some smaller suppliers have already announced price cuts and energy regulator Ofgem has warned larger firms like British Gas that it expects them to pass on any such savings.
Business energy users, as well as domestic customers, would be expected to benefit from lower business gas and business electricity rates if commercial gas suppliers passed the savings on.
But Mr Morgan said firms should not assume that business energy suppliers would automatically lower commercial electricity prices or gas tariffs. He said it was still essential to compare business electricity and gas prices to get the best available deals on the market.
“Energy prices are still extremely volatile and firms should not assume their business energy suppliers will pass these savings on to them,” Mr Morgan said.
“In any event, rises and falls in energy prices take some time to flow through to business energy customers as most firms are on fixed-term contracts – prices fluctuations only kick in once these contracts come up for renewal.
“In a competitive market like this, where business electricity and business gas suppliers are fighting for market share, it’s actually more important than ever to compare commercial electricity and gas prices. It’s the only way to find the cheapest deals.”
Last week, Ovo energy became the second small energy company to drop tariffs for its 70,000 customers. British Gas chiefs are reported to be considering a price cut before its parent company Centrica announces its profit results this week.
The Energy Advice Line is a business electricity price comparison service that enables firms to compare the market for the best possible commercial energy deals at the touch of a button. The service has a team of business experts who can give advice about business energy contracts and how to avoid expensive contract rollovers.
For further information visit www.energyadviceline.org.uk