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Energy prices soaring advice

Posted: 17th September 2021

I am sure you have heard the recent news about UK power prices soaring due to the fire at the National Grid site in Kent.

Prices the day following the fire jumped by 19% on the wholesale market.

Over the last year to eighteen months prices have been rising dramatically anyway due to Covid, the general trend of the wholesale market and extra levies on the standing charges.

The cost of energy is already high, so what are the implications of this fire and the closing of the link between France and Britain for businesses.

Current – (as in today and for a few days). Some suppliers are withholding pricing and have pulled current offers.

Short Term – (6 months). The link will be out says the National Grid, meaning prices will likely remain very high in this term

Longer Term – Plus 6 months). Prices should settle back down once the link is back up and running.

The UK is a net importer of power and this link being down means the National Grid is forced to turn on coal-fired stations.


What does this all mean for your business and particularly your electric and gas contracts?

Simply put, if you have a current contract and its end date is April 2022 (longer term) then you can still get reasonable prices for new contracts going forward.

If, however you have a contract and the expiry date is before April (short term) then you might want to think about holding back just now until it settles, at least for a few weeks.

And if you are looking to go into a contract starting now, you might want to just go with out of contract rates, again until things settle down.

This last bit of advice is not usual practice, normally Mycos would not recommend OOC rates, but presently OOC rates might actually be cheaper than a contract, it is worth comparing. This is only a short-term solution and as soon as the market normalises then a contract would be more desirable


If you have questions about your energy contracts or simply need help and advice, do speak to us – we are on 0131 344 0285.

Business Comment

Business Comment is the Edinburgh Chamber of Commerce’s bi-monthly magazine. It provides insight on Edinburgh’s vibrant business community, with features on the city’s key sectors, interviews with leading figures and news on new business developments in the capital.
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