The Energy Price Cap and my Business

As a business owner, you are always looking for ways to save money on your expenses. One of the biggest expenses for many businesses is energy. With the recent introduction of the energy price cap, you may be wondering how this will affect your business.

What is the energy price cap?

The energy price cap is a limit on the amount that energy companies can charge for their standard variable tariffs. It was introduced by the UK government in January 2019 to protect consumers from high energy prices.

How does it work?

The energy price cap is set by Ofgem, the UK energy regulator. It is reviewed twice a year and is based on the cost of supplying energy. Energy companies are not allowed to charge more than the cap for their standard variable tariffs.

How does this affect my business?

If your business is on a standard variable tariff with an energy company, the energy price cap will limit the amount that the company can charge you. This means that you may see a reduction in your energy bills.

What if I am on a fixed-term contract?

If your business is on a fixed-term contract, the energy price cap will not affect you until your contract comes up for renewal. At this point, you may be able to negotiate a better deal with your energy supplier.

What should I do?

If you are on a standard variable tariff, you may want to consider switching to a fixed-term contract to take advantage of lower prices. You can use a comparison website to find the best deals.

What else can I do to save money on my energy bills?

There are a number of things that you can do to reduce your energy bills, including:

• Switching to energy-efficient light bulbs
• Turning off lights and equipment when they are not in use
• Upgrading to more energy-efficient equipment
• Insulating your building to reduce heat loss

By taking these steps, you can reduce your energy bills and save money for your business.

Conclusion

The energy price cap is a positive development for businesses, as it limits the amount that energy companies can charge for their standard variable tariffs. If you are on a standard variable tariff, you may see a reduction in your energy bills. However, it is important to consider switching to a fixed-term contract to take advantage of lower prices. By taking steps to reduce your energy usage, you can further reduce your bills and save money for your business.