With 2011 proving to be a particularly turbulent year for worldwide energy prices, heads are now turning to what to expect in 2012.

With civil unrest in the Middle East unlikely to ease, mixed with increased export capabilities, wholesale prices are expected to fluctuate heavily. European leaders look likely to impose an oil embargo on Iran, with Tehran warning of rising tensions and likely retaliation.

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Chris Huhne, UK Energy Secretary, has recently dismissed reports that the UK has the highest energy costs across Europe, whilst acknowledging that prices are rising both in the short and long term. He went to advise both domestic and commercial/ business customers to search the market to find the very best prices available. Given the lack of competition between many suppliers at the moment, Torse strongly agrees with Mr Huhne’s idea to ensure your business is getting the best value.
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In an effort to assist and, where possible, protect small businesses and vunerable consumers paying increasing energy costs, Ofgem have imposed a set of guidelines for energy suppliers. The Ofgem press release is attached below but a brief summary of these changes are as follows:

1. New requirements on written estimates following visits from face-to-face salespeople will come into force on 18 January 2010. Essentially, this would put an end to Contracts being signed that don’t match what was ‘promised’.

2. Doubling the threshold of debt a customer can carry and still switch supplier to £200 will come into force on 18 January 2010. This reduces the practical obstacle that has delayed many clients in the transfer process.

3. Further clarity in printed billing information [via PDF or post] from suppliers and the production of annual statements to customers if these are not already in existance from July 2010. This provides improved billing management.

4. Requirement for the six big energy companies to show more openess regarding their margins from the business community in these difficult financial times. This should enable businesses to see to what extent they are being exploited within the market.

Ofgem Assistance for SME and Consumers Press Release PDF

In these ‘Straightened Times’ the newly observed behaviour of Energy Suppliers is creating concern in many circles. Whilst there patently is an economic downturn, some behaviour can best be described as over enthusiastic. In most circumstances now all Energy Contract Renewals or Transfers are accompanied by a Credit Check on the business concerned, even when staying with your current supplier.

This new found paranoia has resulted in an exuberant application of the word ‘NO!’ . Whilst not wishing to be disparaging regarding the merits of such a process, businesses are failing, it is easy for the third party credit checking organisations to err ‘statistically on the side of caution’ and say no. continue