NCB Preferred Partner Benefit


The unprecedented rise in energy prices and the potential impact on business


Energy and the impact it is having on all our lives both domestically and commercially is all everyone is talking about. So, what has happened and how can Focus Assured (FA) help?


As a result of a high demand for gas and reduced supply, there has been a surge in wholesale prices for many months. Whilst prices were at record lows as countries locked down and demand plummeted during Covid-19, the speed of change, as a result of countries re-opening their economies and recovering from the Covid 19 pandemic, has been unprecedented.


What’s causing the price increases?


A number of other factors influencing this included a high demand from Asian markets, unseasonal weather contributing to a reduction in renewable electricity generation, with more reliance on gas fired power stations. Added to this some power plants also had to be closed for regular maintenance that couldn’t be completed during the Covid-19 pandemic. In addition, as the country moves towards electric driving our electrical infrastructure is in need of drastically upgrading. There is also a lack of storage space for gas and electricity onshore.


Add to that Russia’s invasion of Ukraine and the result is a turbulent and uncertain market. This all adds to the risk of disruption to European gas supplies, further impacting wholesale prices, with oil prices continuing to rise and a growing expectation that it will only get worse.


Unfortunately, with no immediate prospect of the situation in Ukraine being resolved peacefully and the ever increasing escalation, prices are expected to remain high and volatile for some time to come.


How can business owners limit the impact?


Whilst no one knows what is going to happen next, limiting exposure to the risk of further increases must be the most logical step for any business owner.


With many customers phoning FA for advice and help during these troubled times, they understand it is important help them navigate through this confusion, to find a reasonable solution to dealing with their gas and power needs.


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Focus Assured are taking a proactive approach and contacting customers, offering advice and help. By looking at their bills, they can see if they are able to switch, if not now, as soon as possible.


Although the Chancellor has announced plans to assist domestic customers with their costs, there are no such plans for businesses suffering the same problems, sometimes on a larger scale.


Finding the right contract


Being independent, FA work with a large number of suppliers. This allows them to find the best prices for a customer or the best deal available at that moment in time from a wide variety of suppliers. Selecting the right contract is quite confusing today, with all the different costs and charges made by the government. Focus Assured aim to simplify things by looking at a customer’s requirements to see which is the best type of contract to enter into.


Contract lengths are also something that


customers are concerned about now. Locking in for long periods potentially can have repercussions. With all the volatility and uncertainty, many customers are only locking in for 12 months to 18 months with the hope that the market will stabilise during that time. Suppliers are also more reticent to offer longer term contracts for the same reasons.


With such uncertainly, particularly in some industry sectors, credit can also be a problem for many businesses. Utilising their relationships with suppliers Focus will try to help secure a suitable contract, even in the more difficult situations that can arise.


Whilst trying to find the best prices for a customer’s supply, NCB members can also approach FA to help assess their usage to see if ways of reducing their consumption could be found, which would also help reduce their costs.


Any NCB member needing support or advice on energy contracts, can contact Danny Jacobs at FA on on 01923 854770.


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