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There is no doubt that in recent years it has been tricky negotiating fixed contracts with a business utility such as the electricity industry. The power over companies has been allowed by the government in favour of clamping down on excessive price rises for domestic customers. One of the reasons why a business utility such as the electricity industry has been so tough to deal with, are the high prices of gas and oil. Excuses by a business utility such as electricity has bee the oil and gas prices are high hence the reason why a business utility such as the electricity industry has to charge high prices too. Even when the cost of oil plummeted the cost of the electricity business utility didn’t come down. But the global recession has affected every business utility especially electricity as the demand for electricity has gone down. Suddenly it is a good time to price compare one business utility with another business utility which is exactly what Saturn Energy has been doing for its clients for over 15 years.
Saturn Energy will compare one business utility each and every other business utility in the UK and then negotiate a fixed term contract with the business utility. It is very tough in these uncertain times for a financial controller to determine the cost of a business utility a year or more ahead but with a fixed price business utility it allows a financial controller to make predictions about fixed overheads such as electricity much more accurately. There is a window of opportunity to negotiate hard with a business utility such as electricity suppliers now that business and industry are cutting electricity consumption. The beauty about companies and organisations hiring Saturn Energy to price compare one business utility with another business utility is that Saturn Energy has the experience to dig below the surface prices of a business utility and find out what the true cost of the electricity is to the business utility and what price that business utility should be charging. It is a specialised skill based on fifteen years of experience complemented by fierce negotiating skills to ensure that the business utility charges a realistic price for a fixed term contract.
Negotiating with a business utility such as a gas business utility is harder as the gas market is conflicted by political considerations. Russia has shown to be an unreliable supplier which has a knock-on affect on every business utility within the UK and because the supply chain is vulnerable it helps to keep the price of gas artificially high. Having said that every gas business utility in the UK is feeling the downturn in business and it is wise to get Saturn Energy to price compare one gas business utility with every other UK gas business utility.
Cheap Business Utilities
It may not have seemed possible a year ago but today there really are cheap business utilities. All companies have to do is employ Saturn Energy to seek out the cheap business utilities from the not so cheap business utilities and nail down a fixed price for one, two, three, four or five years. Not so long ago the notion of cheap business utilities was ridiculous with oil prices going into the stratosphere and gas prices following in the oil wake but, now that oil prices have come back down to earth and the global recession has severely reduced consumption the reality of cheap business utilities is here in the UK, at least for a short while. The problem for companies wanting to choose one of the cheap business utilities is to find a genuinely good deal as some so called cheap business utilities hide charges behind a lot of smoke and mirrors.
At one time in the glory days for the electricity industry it was almost a time to print money. Everyone and every company were being squeezed by the gas, electricity and petrol industries and there was nothing anyone could do about it. And then oil prices fell to earth with a thump and the recession really started to bite and as consumption fell the reality of cheap business utilities became clear to all who follow what is a complicated market. For instance, gas was for many years considered to be the king of cheap business utilities, but that was when loads of North Sea gas was flowing but now more and more gas is being imported from Europe with a risk that supplies may be affected by the whims of the Great Bear, Russia. Gas is one of the cheap business utilities that is reluctantly lowering prices mostly because demand has gone down. However, out of all of the cheap business utilities it is electricity that offers the best deals.
The secret is to work with Saturn Energy and ferret out the really good deals that will stand the test of time. Cheap business utilities will remain cheap only if prices are pegged within a watertight contract that can last for up to five years. As soon as the green shoots of recovery appear industry can be certain that cheap business utilities will rapidly become a thing of the past. It is important to peg electricity prices so that financial controllers can really plan ahead with confidence knowing that the window for cheap business utilities will stay open for the term of the contract. For the electricity companies, it is good to secure contracts in a recession because cash flow is reduced through reduced demand and there is a chance that the economy may still get a lot worse before it starts to get better. Five year contracts are a bet against prices falling for the utilities companies and a bet against prices rising for the business sector that is relying on cheap business utilities to help get industry profitable again.
