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Welcome to

your quarterly

report

In this edition, you'll find the latest information about movements in energy prices ahead of the October peak month for switching and the outlook for non-commodity costs to help you plan your future energy strategy.

Business electricity prices soaring to 12-year high

Electricity retail prices are soaring with 1-to-5-year contracts for medium-sized businesses(1) jumping by 23% on average in Q2’21 compared to the same period last year(2), primarily driven by exceptional high wholesale power prices for the front months and season.


In fact, business electricity prices have surged to their highest level in over a decade according to data from the Department for Business, Energy & Industrial Strategy (BEIS)(3) and energy research and consultancy firm Cornwall Insight(4).


Wholesale power prices have bounced back strongly from the lows seen in Q2’20. As a result, the commodity element of a typical electricity bill for a mid-market company has increased for the fourth consecutive quarter and stands at 42%, which is seven percentage points (pp) higher than a year ago(5).


On the other hand, although third party charges (or non-commodity) increased in real terms for the second consecutive quarter, it declined as a proportion of all costs to 57% in Q2’21 from 59% in the previous three months. 


Metering costs continue to account for 1% of a typical electricity bill.

Find out more here >>

Latest energy industry news

‘Data must be improved if net zero is to be a success’

23 Nov, 2021
The success of net zero targets is dependent on improving emissions data, according to the BCS A new study done by the British Computer Society (BCS) revealed that 71% of tech experts don't feel policymakers and departments have the correct data to make net zero a reality. The study also claims that if governments and industries are not given better data they won't be able to achieve their pledges. According to the study the correct information on everything that emits carbon, from vehicles to homes and offices, must be accessible or setting net zero goals, such as those at COP26, will be pointless. 61% of those surveyed also stated that they think IT and digital technologies are not currently being used efficiently enough throughout industries to tackle climate change.

Energy UK’s Chief: ‘Private sector is moving faster than government’ on decarbonisation

23 Nov, 2021
The pace at which businesses are moving towards decarbonisation is faster than the government. That’s the suggestion from Emma Pinchbeck, Chief Executive Officer of Energy UK when speaking to the BBC show Question Time about COP26.

With COP26 underway, here’s how we’re helping businesses to decarbonise, create value and improve their energy resilience

05 Nov, 2021
As world leaders meet at the United Nation’s COP26 event, we share our plan to continue supporting businesses throughout their net zero journey.
> Show More

 
Sources & Notes:


(1) For the purposes of this report, a mid-sized business is defined as an energy user consuming 150MWh and 203MWh of electricity and gas respectively per annum


(2) Based on average annualised energy prices for a mid-sized business consuming 150MWh and 203MWh of electricity and gas respectively from a sample of 18 suppliers


(3) BEIS quarterly gas and electricity prices for the non-domestic sector including the Climate Change Levy, June 2021

www.gov.uk/government/statistical-data-sets/gas-and-electricity-prices-in-the-non-domestic-sector



(*) Estimated increases in Q2’21 based on average annualised energy prices for a mid-sized business consuming 150MWh and 203MWh of electricity and gas respectively from a sample of 18 suppliers


(4) Cornwall Insight: Power prices for SME’s reach record highs, 23rd June 2021

www.cornwall-insight.com/newsroom/all-news/power-prices-for-sme-s-reach-record-highs


(5) Business electricity and gas cost stack: one-to-five-year commodity and non-commodity forecasted costs for a sample business customer with a non-half hourly meter. Non-commodity costs include: Transmission & Distribution components (TNUoS, BSUoS, DUoS) and Charges & Levies (RO, CCL, CfDs, CM)


(6) Based on modelled consumption by SIC codes using Experian dataset as of May 2021

Achieve sustainable savings
Building renewable solutions into your energy strategy is similar to running your business. You need the right insights, innovative technologies and an eye for efficiency - but you don't have to tackle this task alone. Our energy experts have the experience and dedicated expertise to help you find the best solutions for your individual needs.

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British Gas and Centrica Business Solutions

As the largest business energy supplier in the UK, we care about creating a cleaner planet and helping you reduce your carbon emissions. That is why we’re now part of Centrica Business Solutions. By combining our knowledge and expertise, we’ll be able to provide you with advice and technologies that enable you to save, reuse and manage your energy sustainably.

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