Monthly Archives: October 2015

Radical Changes Proposed by Competition Watchdog

Competition Watchdog suggests radical changes as households are overcharged…


Currently about 70% of UK households are paying over the odds on energy suppliers ‘standard variable tariffs’ or out of contract rates.

Whenever families move home or their fixed term energy contract comes to an end, they are defaulted on to energy suppliers higher charging ‘standard variable tariff’. With 20.7 million households in the UK as of April to June 2015, the aggregated over payment figure by UK homeowners is approximately £2.9 Billion per year.

Switch supply with Switch with Sky Blue Energy

In a move to tackle this problem, the Competition and Markets Authority is looking for radical ways to encourage households to engage with the market and seek better deals which could provide typical savings of £200 per year.

These changes could involve forcing households to change their energy supply by terminating indefinite standard tariffs. Customers would be informed that their contract was coming to an end to prompt them into seeking a new deal. Those who failed could be put onto a one-year default tariff which is likely to be set by suppliers and would be sent repeat switching reminders.

Another suggestion would be to impose temporary “safeguard” price caps on the default tariffs which could potentially result in price cuts for millions of families while the CMA introduce new measures to encourage switching.

Whichever methodology the CMA decide upon, one thing is certain, changes are on the way. With this in mind, it makes perfect sense that household’s slash this combined over payment figure and put the typical £200 figure in their pockets rather than the pockets of the energy providers.

With Sky Blue Energy you can reduce your energy costs and receive a £30 voucher to spend on match day tickets at Coventry City Football Club. It’s a win, win!

In the last sixty days (28th August – 26th October) customers have typically saved an average of £189.98, with the maximum being £2,486 before receiving their £30 voucher.

Start your savings today Switch with Sky Blue Energy

GET Energy Cost Analysis

Big impact on energy costs from Third Party Charges

The wholesale energy market has been falling now since July 2014 apart from a few blips along the way, but on the whole prices are the lowest they have been since around 2010. But does this mean you are guaranteed a saving on your next energy contract renewal?

With gas supply contracts yes, chances are we can get you between 10-15% saving on average, however, with electricity it might not be so simple. Third Party Charges (TPCs) are having a big impact on energy costs and are the main reason for rising electricity bills. For example, third party costs can now account for approximately 50% of the delivered electricity bill price compared to about 30% five years ago. 

Businesses are now beginning to realise how important these elements are during the contract renewal and negotiation stage, and how each supplier breaks these costs down and present them in different guises. Some of these costs may not be recognisable and chances are you may not have seen some of them before. When you work with GET Solutions, we provide clear and transparent costing reports from each supplier, giving you the correct information to create an informed and accurate decision on choosing your next energy contract. Furthermore, we aim to deliver you a saving with our purchasing power and exclusive relationships with over 30 energy suppliers in the market place.

In April 2015, the Government introduced the Energy Market Reform (EMR). Charges like Capacity Market (CM) and Contracts for Difference (CfD) were introduced and will create a mechanism to support the generation of low carbon electricity. An investment of £110 Billion is needed by 2020 to meet environmental targets so third party costs are forecast to continue to rise over the coming years.

To find out more about Third Party Costs and how they impact your business, please get in touch with our Corporate Team on Tel. 0800 888 6020 or email corporateteam@getsolutions.co.uk

October Market Report

Energy Market Update for October 2015

Our latest energy update providing insight into market trends
for gas, power & oil, and what to watch throughout the month.

Market Summary

 

Gas – Prices increase month on month as higher winter demand approaches
Power – The power market edged up on higher fuel costs
Oil – The oil market struggled to provide any clear direction, as declining US crude production is offset by lower expected oil demand

Direction of Market Price (September 2014-2015)

Market Movement

Gas
Gas prices increased throughout August and September, as domestic gas demand was forecasted to increase as winter got closer. Norwegian gas production and LNG cargo deliveries boosted supply capacity throughout September, limiting the effect of higher expectations of gas demand, which eased October gas prices.
Britain will continue to receive more gas supply during October and thanks to higher than usual LNG Cargo deliveries, should be able to provide supply flexibility over the course of this month.
Further supply outlook continues to remain healthy due to high storage however, the looming winter weather and forecasted seasonal normal temperatures will bring higher demand over the coming months..

May Gas Report

Power
When gas price increases, the expected cost of generating electricity from gas also increases, which immediately supported upward movement in the power market.
As temperatures drop to seasonal normal throughout October, there is a risk that gas fired plants will be needed to keep up with electricity demand providing upward support across both commodity markets. Upwards support also came in addition from a weaker sterling – euro exchange, increasing the cost of importing gas from Europe. Lower coal prices, which would reduce the expected cost of generating electricity from coal, did very little help the market recover from previous months gains.

September Power Review

Oil
Oil prices narrowly increased during September, as the upward momentum from August is beginning to fade. United States oil output has been declining since mid-June as low oil prices have inevitably lowered production. Prolonged low oil prices have also meant that banks are increasingly cautious in funding operations that have a high risk of generating adequate returns. At the moment, World oil production remains relatively high; this should limit any upward pressure on oil prices.

In September, the US Federal Reserve (FED) decided to keep interest rates unchanged, taking in to consideration recent global macroeconomic concerns – China’s economy is showing signs of slowing and Europe continues to face economic growth difficulties, all of this will probably continue to limit the expected demand for Oil.

September Oil Review

 

What to watch out for throughout October:

Concerns over the Chinese economy have now started to trigger concerns about Asian demand growth. Any developments linked to the health of the Chinese economy could influence and impact commodity markets.

Any signals coming from the United States on whether an interest rate rise will take place this year. The likelihood of an interest rate hike in 2015 should increase the relative strength of the US dollar, which will reduce the appetite for commodity growth demand, especially amid weak Asian demand growth.

A rare meeting of OPEC and Non-OPEC (Oil) producers has been set for October 21st in hope they will find an agreement to support the oil market in light of low demand amid high supply.
There has also been speculation that Russia’s energy minister and Saudi Arabia have arranged a meeting to suggest ways of tackling low oil prices.


Topics of Interest:

GET your FREE Water Health Check

Energy Industry Update P272

Removal of CCL Exemptions

Duo_raise_money_for charity

Fun Running Duo Raise Money for Charity

We are proud to announce that two of our members of staff Geraldine Roche and Julie Ogelsby completed the Coventry Fun Run and have raised much needed funds for charity.

Completing the 3.5 mile run in just over 32 minutes the pair have managed to raise an impressive £207 for the Coventry Boys’ Club.

The Coventry Boys’ Club exists to provide children & young people with a safe and caring environment in which to spend their leisure time. The club provides a whole range of activities which include, sporting, social and some educational which are designed to increase the confidence and self-esteem of those taking part..

GET Solutions would like to congratulate Geraldine and Julie on their impressive effort for charity!