It is completely unrealistic to expect the long term pricing of commercial gas and commercial electricity to head in any direction other than upwards. Large scale discoveries of gas have been made in Eastern Europe over recent years that have changed market dynamics and secured midterm availability. They have not, however, drastically reduced costs.
The price of commercial electricity is heavily linked to the cost of oil. Both gas and oil are presently still in abundant supply, but these supplies are not limitless and both natural resources see their costs of extraction steadily rising. In addition to the increased commercial costs of supplying these, both green and other local taxes continue to add pressure to the costs of commercial gas and electricity.
Clearly the long term trend is set to continue. However, in the short and mid-term, there will always be fluctuations in price, because as a procurement function for these utilities, you have two possibilities to benefit your business when buying commercial energy. You can either secure flexible pricing at the lowest possible rate or you can secure long term fixed pricing in to provide pricing stability, either because it is a safe option or through a gamble on a conviction of imminent increased costs of commercial gas and commercial electricity.
At Online Energy, we specialise in identifying the best available deals on both fixed and flexible pricing for both commercial gas and electricity. As an expert energy broker since 1993, we have helped many businesses to realise cost benefits they simply could not have done alone.
This entry was posted on Tuesday, February 2nd, 2010 at 12:59 pm. You can follow any responses to this entry through the RSS feed.