In this guide, we’ll examine both sides and help you determine which option is best for you. We’ll also explain how the Business Energy Comparison website can help you bring costs down.
Should I Fix My Energy Prices Until 2024?
It is definitely worth considering getting a fixed energy deal for your business until 2024. With no form of energy cap benefiting businesses, there’s little else in the way to shield your business from further increases that are expected to occur throughout 2023.
Whether you’re currently on a variable tariff or a fixed rate deal, Business Energy Comparison can help you find a better rate for your business. We specialise in helping businesses compare energy deals and find the one that best meets their requirements.
Whether you need a new fixed-rate electricity or gas tariff, let our experts compile a list of the best deals of the day. Energy deals fluctuate as much as energy prices, which is why it’s important to seek professional help. We can alleviate the stress and move your business onto a more affordable future.
Why You Should Fix Energy Prices Until 2024
Before the energy crisis hit, switching to a fixed energy deal would be the most logical way to save money. However, things got a lot more confusing when the cost of energy went up.
Given how volatile energy prices currently are, sticking to variable tariffs could work out to your benefit. On top of being protected by the price cap, you may also benefit from lowering fuel prices in the future – if that ever actually happens.
Still, it’s worth checking what fixed-rate tariffs are available to you to assess whether it’s worth taking the risk. The main pros of fixing your energy prices until 2024 are as follows:
You may find a cheap tariff
If you find a cheaper tariff than the government’s Energy Price Guarantee, then you should go for it. However, the prospect of finding a cheaper tariff is becoming increasingly difficult and basically impossible in some cases. However, it’s definitely worth looking at – just in case!
It’s always worth checking with your current energy supplier for fixed rates. They may be willing to offer an affordable fixed-rate deal to those who are already with the company.
The energy grant is ending
Since October 2022, all households have been able to take advantage of the £400 energy grant. This grant was given to households across England, Wales, and Scotland. It was paid out incrementally over the months following October. This helped some homes save up to £67 on their monthly energy prices.
However, this scheme is scheduled to end in March 2023. Therefore, with no discount in place, it may be worthwhile for some households to switch to a fixed tariff.
Some energy providers are offering a one-year tariff
The biggest downside of getting a fixed-rate tariff is having to pay the exact same rate for energy until the tariff ends. This is a disadvantage as it could mean you miss out on the drop in energy prices in the future, resulting in you paying more than you have to in the long run.
To secure more fixed-rate customers, some energy providers are offering a one-year tariff contract. This will at least see you through the uncertainty of 2023. By agreeing to a fixed rate now, your business won’t have to worry about the price increase that will happen in the coming year.
Peace of mind
The way things are looking, energy prices are going to remain volatile for the foreseeable. By securing a fixed tariff, you gain peace of mind that you’ll be paying the same rate for energy throughout these uncertain times. This way, you can effectively budget for the coming year, knowing exactly how much you need to spend on energy.
What Will Happen to UK Energy Prices in 2023?
As aforementioned, energy prices are predicted to increase come April 2023. Since the 1st of January 2023, many households have already seen an increase in their energy prices. Energy Savings Trust predicts that energy prices will remain consistently high right through to 2024.
On the other hand, industry analysts at Cornwall Insight have predicted that energy prices will fall below the price cap by July 2023. By the second half of 2023, Cornwall Insight suggests that energy bills for a typical household will fall to around £2,800. These analysts are predicting this price decrease as a result of the falling wholesale energy prices.
Despite these findings, it’s impossible to say whether or not this fall will definitely happen. We won’t have an indication until the second half of 2023. This is because energy providers purchase energy ahead of time. Daily falling prices don’t really reflect anything, as energy firms buy in advance.
Plus, £2,800 is still an extortionate amount to pay for annual energy usage. It’s twice as much as the 2021 energy cap. Therefore, the government may extend the current price cap further into 2024 than is currently planned. They may also introduce additional financial aid for those who are struggling, but we’ll have to wait and see.
On the whole, it’s safe to say that more difficult times lie ahead throughout 2023 and into 2024.
The current energy price cap will only last until the 1st of April, 2023. After which, energy costs are set to soar, and a less favourable price cap will be put in place. So, should you reconsider the deal you have with your current energy supplier? Should you get an energy tariff fixed deal?
Agreeing to a fixed energy tariff could help you save money in the long run. The energy market is likely to get better before it gets worse. Getting a fixed tariff from an energy supplier will keep your bills consistent throughout the rest of the cost of living crisis. You won’t suffer as the energy prices continue to climb (if they do!).
At the same time, gas and electricity prices could drop come July 2023. If this were to be the case, the fixed deal with your energy supplier might not be as economical as you hoped.
Either way, it’s worth your time to check out fixed-rate deals that are available to you. Before the end of the current Energy Price Guarantee, let Business Energy Comparison find you a better deal.
Frequently Asked Questions
If you decide to fix your energy prices in 2023, we’d recommend only fixing them in the short term. Ideally, 12 months would be your best bet, but 2 years would also be acceptable. Once your 12-month tariff is up in 2024, there’ll likely be cheaper tariff options available. So, you could switch at this point to receive a bigger discount.
The energy crisis that the UK is currently facing is the result of several reasons, from the Russian invasion of Ukraine to dwindling resources. After Europe imposed sanctions, Russia cut the Nord Stream 1 pipeline. This resulted in less gas going around, resulting in soaring prices. Additionally, the UK has used up all its natural gas resources, so it has to import.
The length of time it will take for the cost of living crisis to end is up for debate. It’s not a case of asking the experts, as it depends entirely on which experts you ask. Both the Bank of England and the Energy Saving Trust believe that prices will lower throughout 2023 and eventually fall in 2024.
However, other experts believe the cost of living crisis will go on til the next decade. It may take us until 2030 for prices to resemble what they did pre-pandemic (with inflation taken into account).
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