How can Torse protect businesses from predicted energy price rises over the next few years?

The economic recession perhaps does have something of a ‘silver lining’ for businesses at the moment. Supply and demand returns to playing a larger part in the price of Oil and Gas; fundamental influencers of the price of Power and Gas in the UK. Maybe something of an oversimplification, however, despite the best efforts of OPEC to maintain artificially high $ per barrel and a reduction in the volatility as the speculators struggle to manipulate the markets their way; we are experiencing a relatively low plateau in Energy prices. Whilst is doesn’t quite hark back to the days of early regulation, with huge savings and fixed prices for up to 5 years [hard to believe!], what we are beginning to see is a fragmented return of longer term business contracts, initially for gas, but also longer-term Electricity contracts.

Factoring in Inflation

Before everyone gets too excited, the energy suppliers have a somewhat more considered approach this time; margins are more closely considered, ‘retention at all costs’ is falling foul of shareholders. That said it’s worth talking to Torse to provide your business with the opportunities that are there. Our pricing Team can source a spread of shorter and longer-term quotes. These tariffs / rates will need quotation modelling analysis. Torse can compare and demonstrate that prices might initially be higher for the longer-term contracts, but when you factor inflation into the model and consider the longer-term prediction for prices rising there are significant savings to be had. Patently all a bit difficult to do on the back of a beermat and convince the FD that the business needs to seriously consider the options available.

Plan Ahead

As ever an unpleasant ‘stick in the craw’ is that those whose cash flow is nailed to the wall are forced to take the high stakes gamble that prices might not go up before they get back on an even keel, let’s hope so. For those who can afford to plan a bit further ahead, just ask yourself…how much is energy going to cost the business in five years time? There might be something you can do not only to mitigate, but significantly reduce those costs over time. For expert advice from our pricing and quoting team, give us a call on 0115 8532120, email us at info@torse.co.uk or use the contact form.

(Don’t wait too long, these opportunities are unlikely to be around for long)