EM-Powered: Understanding energy price inflation

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With wholesale gas and electricity energy prices rocketing ahead of the October peak month for switching, it now more important than ever for businesses to monitor and review their energy consumption and devise an effective energy procurement strategy.

Electricity prices have surged to their highest level in over a decade according to data from the Department for Business, Energy & Industrial Strategy (BEIS), while average gas prices for Q2’21 are up 30% year-on-year for medium-sized businesses on one to five-year contracts.

According to BEIS’ survey of non-domestic gas prices in Q1’21(3), large and very large companies saw quarter-on-quarter increases of 3.5% and 3.2% respectively and further increases are anticipated in Q2’21 due to tight market conditions and increased demand for gas globally.

It is interesting to note, however, that there have been marginal declines in Third-Party Costs (TPCs) as a proportion of all energy costs over the last three months in both the electricity and gas sectors.

Amid such volatility in the business energy markets, energy management portals such as EM-Powered can be an invaluable resource for monitoring how the overall picture is shaping up in the UK and mainland European countries.

Em-Powered enables users to access historical wholesale gas and electricity price graphs to get a better understanding of whether the current trends are likely to be short or long-term – invaluable when it comes down to energy contract negotiations.

If you would like to find out more about EM-Powered and the many benefits it brings to the energy procurement process, please get in touch with one of our consultants on 01225-867722

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