Business energy bills for the upcoming year could face an increase due to the expected rise in third-party costs. These costs involve various charges of electricity and environmental fees that contribute to the delivery of energy to businesses. As suppliers anticipate an increase in these charges, it is up to business owners to stay informed of these changes and consider how they could impact their finances. Being conscious of energy usage and exploring alternative solutions could be beneficial in alleviating the impact of the rising energy bills.
Wholesale energy costs, third-party costs, and additional supplier charges are the main factors that determine your energy bill. Wholesale energy costs refer to the actual cost of the energy supplied to you, while third-party costs include transmission and distribution costs. Additionally, there are other charges that may be added by your supplier, such as exit fees or standing charges. When prices across the market change and inflation rises, these extra charges are pushed up, leading to your business energy bills being even more expensive.
For consumers, the past year has been a bit of a mixed bag when it comes to wholesale energy prices. While prices have been falling overall, there is a concerning trend that could cause bills to go up in the near future. Third-party charges, such as the Renewables Obligation and Balancing costs, have been steadily rising, increasing how much suppliers have to charge their customers. This, along with the volatile wholesale market prices, has created a perfect storm of sorts, one that could lead to consumers paying more for their energy in the years to come.
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