August 2024 Newsletter from Nationwide Energy
Welcome to your August edition of the Nationwide Energy Consultants newsletter! As your trusted energy advisers, we are dedicated to keeping you updated with the latest industry trends, insights, and news. Whether it’s information on market shifts, tips for optimising your energy usage, or updates on our services, we’re here to help you stay informed and make the best energy decisions for your business.
A Message From Our Operations Director, Gerry O’Hara
“August has been a mixed month for the licensed trade, with spells of poor weather and other factors leading to people going out less. The Nationwide Energy team know that it’s typically a quieter month, due to many people in the trade and in our partner breweries and pubco’s being on holiday. This understandably impacts the scheduling of changes of tenancy and responses on issues we are supporting customers with.
Many employees of energy suppliers have been on holiday too. This has made a difficult situation worse, as suppliers are increasingly only available by email and webchat. This lack of accessibility makes it harder for our customers, and our staff to resolve issues.
Areas of particular concern include:-
- The increasing number of disconnections being aggressively pursued by suppliers – on one occasion for a balance of just £200.
- Lengthening delays in supplier responses, with the processing of CoT’s being a key concern, as it places additional cost pressures on new businesses.
This has meant we are raising more complaints with suppliers, leading to an increasing number of complaints to the Ombudsman. While we are winning these complaints, customers are having to endure long periods of higher costs and other pressures before they get a resolution. I am grateful to our customers for their patience during these periods. I’m sure that many of them feel that they are banging their heads off a brick with suppliers who simply don’t respond or fail to grasp the issue if they do.
We expect September to be a busier month as the trade gets back into full swing, with many new hospitality businesses being created. We look forward to supporting our partners and customers with any challenges that they experience.”
If you require any help or guidance, get in touch:
Call: 024 7632 8995
Celebrating Excellence at the On Trade Scotland Hospitality Awards!
We had a fantastic time at the DoubleTree by Hilton in Glasgow, celebrating the On Trade Scotland Hospitality Awards this month. It was an honour to be part of this special evening, and we were thrilled to present an award for Customer Service.
Congratulations to all the winners and nominees! It was inspiring to see the hospitality sector come together to support and celebrate each other’s achievements in such a positive way.
Your Energy Update
The absence of any significant events influencing the supply and demand balance in electricity and gas has in the last fortnight led to a further rise, with prices then levelling and falling in recent days. While the key metric of European gas in storage has reached 90%. There remain several factors that have the potential to reduce supplies and increase prices.
Military – there has been no significant change in the situation in Ukraine/Russia or the Middle East conflicts. One positive is that Russia continues to flow gas through Ukraine to those Eastern European countries that still rely on it.
Weather – several parts of the world have experienced record temperatures leading to higher gas for power demand for air-conditioning. The UK is experiencing lower temperatures alongside wet and windy weather from Storm Lillian with increased gas for heating demand being offset by higher renewable generation.
Gas production – there has been no significant interruptions and data from both China and the United States, showing demand remains muted.
The graph highlights the greater volatility in the commodity cost of gas. The more stressed the market, the wider the margin between the two.
But what does this mean for you?
In terms of contract rates, the average electricity rate has fallen, by a greater margin than the change in commodity cost. The gas has continued to increase, with contract rates lagging behind market movements.
As we move closer to winter, volatility is likely to increase. Any operator with a contract due to renew in the next six months is urged to review their options. Nationwide Energy’s field consultants and renewals advisors can explain the key features of different supplier contracts alongside a market review, and updates on available prices.
Any customers struggling to pay current rates or are at risk of default can contact our Billing Team for support and advice on their options.
Please contact us on:
Tel: 02476 328995
Email: info@nationwide-energy.co.uk
This month, we are sharing a message from our Senior Energy Consultant, Mark.
“ We’ve recently seen energy prices starting to rise again after reaching a low point earlier this year in February and March. If your contract renewal is due within the next 12 months, it could be a good time to review your options and see what’s currently available in the market.
I recently spoke with a tenant whose renewal is coming up in February 2025. When their current deal was signed, we considered securing a longer fixed-price contract, but with prices steadily declining at the time, we believed there was potential for them to drop much further. The tenant opted for a 1-year contract, planning to reassess the situation around this time.
Now, that same contract would cost around £400 more per year. As we approach the winter months, when gas demand typically rises, there is a possibility that this upward trend will continue.
If your contract is approaching its renewal date, we recommend taking a proactive approach to review your options. Locking in a favourable rate now could help you avoid higher costs down the line. Our team are here to help you navigate the market and find the best solution for your needs.
If you’d like assistance or have any questions, please don’t hesitate to reach out. We’re here to support you.”
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