Payroll Software News

SMEs urged to dodge energy price hike

Posted by Editorial Team

Small and medium-sized enterprises (SMEs) have been warned that now is the best time to find and sign-up to a cheap energy deal.

The Energy Advice Line claimed the market is only going to get more volatile, making it increasingly likely there will be further price hikes in the near future.

It was noted that at a time when many firms are struggling to stay in business rising gas and electricity bills could put mounting pressure on SMEs.

In the last week, one of the Big Six energy suppliers has announced plans to put up its prices by a significant amount.

SSE has stated its tariffs will be rising by nine per cent from October and will then be capped until the second half of 2013.

The move will affected five million electricity and 3.4 million gas customers and is thought to be an indicator that similar price rises will be made by other leading energy suppliers.

SSE chief executive Ian Marchant said: "Unfortunately, the increases in costs that we have seen since making (the January) pledge can no longer be absorbed and mean that we are unable to keep prices at their current levels beyond this autumn."

He added that increases have "become unavoidable".

The firm blames the need for the price rises on the need for higher costs to cover the extra expense it faces from using the energy networks, as well as general increases across wholesale markets.

In comparison to this, Power NI has announced it intends to cut electricity costs for Northern Ireland customers from October by shaving around £80 off a typical household bill.

As the differing approaches from the two energy suppliers shows, the market is particularly unstable at the moment and so it is not the time to be complacent.

Managing director of the Energy Advice Line Julian Morgan expressed concern over further problems for businesses as prices rise following the statement by SSE.

"It is more than likely that once one of the Big Six makes an announcement like this, the others will follow suit and there will probably increases by other suppliers in the next few months."

He added that business electricity users should be looking to switch to the best deals currently available and "lock in for one, two or even three-year contracts".

Mr Morgan claimed "there are some good fixed-rate deals out there", but urged individuals to ensure they seek advice from "reputable and independent switching services".

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