Rising oil prices will hit businesses right where it hurts – in their energy bills.
That’s the verdict from Utility Team’s Kirk Cadden and Alex Rubboli, who say soaring wholesale prices are being driven by oil becoming more expensive than it has been at any other point since 2014*.
Alex explains: “This is because the price of the gas used to provide vast amounts of the UK’s energy is heavily linked to the cost of crude”.
The analysts expect the price of oil is likely to hit $100 (£76) next year.
Kirk adds: “The uncertain future posed by Brexit compounds this issue – the UK currently sources around half of its gas from Europe and the pound seems to be ever-weakening, making these imports progressively more expensive.”
When ongoing political issues such as the nuclear deal with Iran are considered, the future of business energy prices is looking increasingly murky.
Utility Team offers clients the opportunity to protect themselves by setting up energy contracts, securing fixed prices and reducing their exposure to market uncertainty.
Alex says: “We can help firms take advantage of contracts stretching up to five-year periods, which not only protects against rising costs, it also gives them a much better understanding of their energy outgoings and the ability to budget accordingly.”
Utility Team can also help its customers save more money through the implementation of energy efficiency measures and by improving workplace behaviours.
Kirk quotes: “Not only can we offer long term fixed contracts, we will also work with clients offering our advice on how they may be able to reduce their usage and therefore minimise the effect the increasing costs will have on their business.”
Alex adds: “Ultimately that’s the only way you’re going to see long-term reductions in prices. You’ve got to look at all aspects and we definitely do that for the customers”.
*Source – Reuters
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