To provide you with an overview of how the gas and electricity industry works, we have done some research and found this very media friendly video produced around 2 years ago [so a little out of date but the basic facts remain the same]. It explains the way the gas and electricity network works in relation to consumers and suppliers. Worth a viewing to get an overview of the subject matter.

Whilst liberalisation of the market is an imperfect method of improving the situation for both Business and Domestic customers, this along with some legislative requirements on the part of the government has shown some improvements. Some of the regulatory bodies discussed in the film were from a Business Energy Consumer fairly toothless in terms of addressing some of the hardline tactics of most suppliers. So once again Businesses need to be smart, manage their energy carefully otherwise it will cost!
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Following a recent investigation, Ofgem has released a new set of guidelines for implementation this autumn designed to protect small businesses by increasing transparency in contracts and agreements with energy brokers and advisors. This will reduce many of the problems faced by small businesses in negotiating deals and clarity on knowing what rights they have as a business energy consumer therefore reducing the number of complaints and hours spent resolving disputes. These changes include:
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The edging up of Oil prices seems to be the fillip required by the Energy Industry to get on board with both UK Wholesale Electricity and gas prices edging up. Although last year’s July high of over $150 a barrel descended below $40 in December, prices this first quarter of 2009 seem to have steadied above $50. Now that the initial reaction to ‘The Recession’ has settled somewhat, we are back now to the more traditional political and economic machinations against the new globally depressed context.

Whilst OPEC (Organization of the Petroleum Exporting Countries) has previously set aspirations for the $100 barrel, their latest monthly ‘Oil Market Report’ (March 09), suggests an ongoing acknowledgement of the change in the world markets, and are pursuing the balance between returns for their members against the needs of the Global Consumers in a recession.

It certainly looks that although the upward pressures are still pushing hard (don’t expect the Financial Markets to stop talking up prices this year), it’s not so easy if no one is going to buy. In the Mid market Business market some suppliers are seemingly reluctant to offer longer term fixed rate deals, perhaps anticipating rates going up this year.