Presentation – Business Gas

The Great Energy Crisis
Protecting your business the flexible way

1. The Crisis
2. The Predicted Market
3. Flexible Purchasing
4. The Revolution
5. Whats Next

The World has hit crises point, however, the worst is yet to come

War on Fossil Fuels

With world governments pushing for more carbon reduction the drive to push away from fossil fuels has driven up the price of oil and gas.
Russia's war on Ukraine

With the invasion of Ukraine and Russia's and China's aim for strategic world dominance, manipulation of the world the market has pushed prices up.
The push to go Green

With governments pushing for greener alternatives, the unreliability of UK weather brings volatility in prices due to supply issues.
UK Inflation hits 10.1%

The true cost of inflation is around 30% according to economists. With no positive long term catalyst, the likely outcome of this is to get much worst.
Not much UK gas storage left

That is in large part because of a decision taken in 2017 to close Centrica's Rough storage facility, in the North Sea, which provided 70 per cent of the UK's gas storage capacity for more than 30 years. It was shuttered after the Government refused to subsidise costly repairs.

The Predicted Market

Gas

Electric

Unprecedented Price Rise

Most energy suppliers buy their electricity well in advance. This is carried out many months in advance and at an agreed fixed price. This is what is known as hedging. By buying at an agreed price suppliers can then pass the set price (plus fees etc) back to their customers on fixed tariffs

The actual problem with the failing UK suppliers is that they didn't sufficiently buy in advance and have been exposed to the rapid speed at which wholesale costs rose. i.e., they have been forced to buy electricity for a higher price than they'd agreed to sell it back to the customer. This is why a lot of suppliers are sending out letters advising customers that their fixed price contracts will see a rise and that there is not enough hedged energy for suppliers to offer lower prices on new contracts.

Fixed Vs Flexible Purchasing

Fixed Prices

This is the general way in which the majority of businesses across the UK purchase their energy. This is the simplest way to purchase energy but not the most cost effective. Suppliers will often look at future prices and set a level to purchase and sell back to customers. To protect themselves suppliers always build a large risk premium to maximise profits and reduce their risk of having to sell energy with little profit.

Flexible Price

This avoids the main drawback of fixed procurement as it removes the need for an organisation to buy all their energy on one day for the years to come which may subsequently turn out to be uncompetitive. Flexible purchasing allows an organisation to spread their risk by purchasing over multiple purchase points, resulting in lower average energy purchase prices during price spikes.

The Revolution

It's Time To Bring Change

Due to the complex nature of energy, most UK businesses sign up for 12, 24, 36, 48, and 60 months contracts meaning they are subject to suppliers risk premium and unable to take advantage of price drops

Our mission is to offer a break from the norm and offer our customers flexible contracts, which automatically save our customers money by the removal of suppliers risk premiums. It also allows customers to take advantage of price dips and average out their contract over the agreed term.

Flexible Price

The truth is that fixed contracts are not fully fixed and any time the supplier deems that they are at risk of loss they only have to give 28 days notice before they can raise a customer's fixed rate

What you get joining The Revolution

Your own portal login to monitor the activity over your contract period, so your energy purchasing is fully transparent.
Dedicated experts with years of industry knowledge to handle your energy purchasing needs.
Notification into the activity on your account
A view of current and historic data on your account so that at all times have a transparent view of your account and savings
The benefit of joining an energy purchasing basket so you can benefit from our massive buying power reducing your cost.
Reports on account activity to aid with your financial planning
A dedicated customer service team, to help ensure your energy account runs smoothly

What's Next

Join In 3 Simple Steps

1

Contact our senior energy consultant
Email: paul@businessgas.com
Contact No: 0161 818 2504
2

Grant us permission to obtain pricing for you from suppliers. (This is only to gather information not to agree to any contract)
3

You view the contract and if you are happy to go ahead, we will get the contract in place for you and start you on your flexible journey.