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UK Business Energy Market Outlook 2021
Posted 11 February 2021 | 
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It is widely accepted that the COVID-19 global pandemic has fundamentally changed how the business world operates. Most businesses have been forced to adapt and for many, their workplaces were empty for much of 2020 as their staff worked from home. Consequently, business managers were less focused on their company’s gas and electricity needs. However, as we start to see the green shoots of positive change, it is now time for businesses to reconsider their energy procurement needs.
Business confidence builds, energy markets rally
Thanks to the rapid roll out of COVID-19 vaccines across the UK and the government starts to plan for the relaxation of lockdown, business leaders are considering how to adapt to the impact of changing business practices over the last twelve months.
Energy markets have rallied over recent weeks, reflecting increasing global fuel demand. Economists are predicting a rapid pick up in economic activity around the world as we move further into 2021 and this is likely to lead to energy prices continuing their climb.
In early December, the news of successful COVID-19 vaccine trials triggered a boost in confidence in oil markets which led to a surge in fuel and energy prices. Between start December to mid-January, Brent Crude Futures – a key driver for UK wholesale energy prices - have seen oil prices climbing by over 15%. On the back of these increases and recent colder weather, gas and electricity prices have soared by 24.72% and 17.06% respectively. To keep these increases in context; prices are still between 30% (electricity) and 13% (gas) cheaper than prices were in Autumn 2018.
As you consider your own business’s re-opening plan, it’s important to re-evaluate your energy procurement.
Does your pre-lockdown business energy contract still apply to your new way of working?
As part of your recovery plan, this is a good time to consider switching energy suppliers as your business needs shift into a new gear.
Given the key focus for businesses returning to the office being the safety of staff, it’s understandable that optimising utility contracts is perceived as being less critical. However, given the current strain on company cashflow, it is worth noting that there are savings to be had by doing your research now.
BSA Buying Group’s energy procurement experts can help cut energy costs
This is where BSA Buying Group can help. Over the last 15 years we’ve helped UK businesses of all sizes and sectors minimise their energy costs (and 25 other cost categories) and we’re confident that we can secure the best business gas and electricity prices for your business.
Our energy procurement specialists remove the hassle, are completely independent of the energy markets and are ready to find a tailored package that suits your long-term energy requirements.
Free energy cost forecasting dashboard
For a limited time only, BSA Buying Group offers its energy clients with one year’s free access to a utility management dashboard, presenting a regularly updated forecast of your energy costs for the next three years. It provides alerts at specific points in the financial year in line with your company budgets so you can take advantage of cost savings and reduce the risk of future energy price rises.
We know how important it is to free up cash in these challenging times, and BSA Buying Group can optimise your energy costs. Contact us today for a no-obligation discussion on 0800 254 0344.
by Matt Roper | 11 February 2021
