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Commercial gas prices and the need for cheap commercial gas have ended up becoming an issue for everyone – from the small business to the multinational.
The UK's second biggest energy supplier hiked its commercial gas prices by more than 14 per cent a year ago, following on from rises in commercial gas prices from its big five counterparts in the previous two months. These soaring commercial gas prices were blamed on the sprialling costs of wholesale energy supplies, said to have doubled in the past year.
These rises in commercial gas prices led to probing from industry regulator Ofgem.
One or two companies have announced plans to reduce commercial gas prices this spring, especially as warmer weather cuts forecast demand, but that still hardly means cheap commercial gas will be widely available. One estimate still reckons commercial gas prices are around 50% higher now than in January 2007.
There are also predictions from market analysts that we haven’t seen the end of the rises in commercial gas prices, making the prospect of really cheap commercial gas remote. High-end business users are set to be disproportionately affected.
Various factors affect commercial gas prices in the UK, and determine how cheap commercial gas is. In Europe, where the energy markets are not fully competitive, commercial gas prices are contractually linked to oil prices and this in turn influences UK prices due to British imports - the UK is increasingly dependent on imports of liquefied natural gas (LNG).
Oil prices, are of course linked to commercial gas prices, and the availability of cheap commercial gas. Oil prices have risen due to strong global demand against tight spare capacity, with market concern over continuity of supplies in key producer countries. It is, however, worth noting that, in real terms, oil prices are still well below historical highs.
Just as a reminder of how the gas market works in the UK, the National Grid owns most of the UK’s gas pipes. The organisation has a licence to move gas around the country on behalf of all suppliers, but has to do so according to the Network Code, ensuring impartial commercial terms.
The National Grid has sold off some of their network to Independent Distribution Network Operators, who have to abide by the Network Code. The National Grid must also ensure there is enough gas available in the UK’s pipes to meet national demand.
Anyone connected to the gas main can choose any licensed gas supplier to supply their gas. This competition means that commercial gas prices should be restrained to the lowest level consistent with making a profit, and should make it easier to access cheap commercial gas. However, in practice British Gas still supplies around half of the country.
If you are particularly keen to source cheap commercial gas, online switch companies offer a neutral comparison service. They enable customers to see at a glance what different energy companies have to offer, and how much they could save. The comparison or ‘switch’ company will then sort out the switch to the new supplier for them.
But even this doesn’t guarantee cheap commercial gas, and won’t necessarily save you vast sums of money.
Particularly as a business user, you may be worried about rising commercial gas prices, since you pay much higher rates than residential users, and are therefore more vulnerable to increases. You may have large premises to heat, for example, so you will be especially concerned about high commercial gas prices, and particularly keen to know how to source good value and cheap commercial gas. Your best bet for obtaining cheap commercial gas may be to go to a utility power broker such as Saturn Energy, as we have negotiated manageably cost effective and cheap commercial gas solutions for thousands of clients over the past 15 years.
Cheap Commercial Gas
The way it works is simple. You supply Saturn Energy with information about your premises, and details commercial gas prices of your current contract, and let us do the rest. We will get in touch with our own suppliers to negotiate the best deal for you for a reasonably priced or cheap commercial gas solution. It also means you can also probably cap your business energy costs for between one and five years ahead. Even better, Saturn Energy can even sort out fixed price contracts, under which your organisation can feel the benefit if prices do come down, giving you another opportunity to enjoy cheap commercial gas.
Saturn Energy will almost always be able to better your existing deal, although you are, of course, under no obligation to take up the cheap commercial gas quote we will give you.
But as we have such strong links with all the main British suppliers of gas to businesses, you’d be unlikely to get a better quote on your supply of cheap commercial gas elsewhere.
