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When is a market not free?

Prices of gas are on the increase for all consumers, and this is particularly harmful to the commercial gas user where prices are less protected than those for the domestic user.

Market analysts are predicting that the price of gas is likely to continue upwards in the long term. Prices are influenced by many of the factors that affect any business; staff, utilities, equipment, oil and exchange rates. In addition to these common influences, commercial gas supply is strongly affected by international politics.

These are all dimensions that heavily influence the cost to the suppliers of trading gas in the market place, but the way they then trade commercial gas is only nominally comparable to the free market supply of most other raw materials and services procured by businesses on a day to basis.

Other than bottled supplies, all commercial gas is supplied through the national grid by a limited number of suppliers. The suppliers themselves tread a difficult path, UK sourced gas is a perpetually rarer and rarer commodity meaning that ethical suppliers can only enhance margins through effective trading and managing their own costs. On the contrary, the suppliers seem very happy to maintain what appear to be conveniently high profit margins in the absence of open competition.

As a business consumer, the way to secure optimum pricing for commercial gas is to use a supply broker such as ourselves at Online Energy where we have the market knowledge and connections to identify the best pricing and contracts for your specific needs.

This entry was posted on Thursday, February 4th, 2010 at 1:14 pm. You can follow any responses to this entry through the RSS feed.

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