Tim Partridge, Head of DB Energy said: “While the industry digests the new PM’s energy relief packages, it is clear that domestic consumers remain further protected than businesses.
The lowered price cap will help residents manage their bills for the next two years, but business owners remain in the dark about how support for the next six months will be provided. Although the level of rates has not yet been released, micro-businesses, SMEs, and NHH currently appear to be safer than HH. After the initial six months, “vulnerable” clients (hotels, bars, etc.) may receive additional exemptions, but again, these details are unclear.
As the October round of contracting nears its breaking point, stakeholders anticipate updates from BEIS, Ofgem, and hopefully energy suppliers soon. Many suppliers are not giving out contracts due to the rising costs and volatility of energy markets, leaving some businesses in fear of being placed on Out of Contract Rates which are the highest they have ever been.
Fracking is back on the menu and more than 100 oil and gas E&P licenses have been distributed, so the generation mix appears to shift away from being “green” as the industry’s procurement and contracting side plays out. The current situation is not improved by green or R&D nuclear investment, which plans for 2040 and 2050 implementation.
It’s unclear how European markets will react to the UK’s changing industrial landscape, but at writing, Dutch TTF is up while NBP falls away and German power has tanked off more than UK power. We now wait to see whether Russian influence will mitigate any downward movement but for the most part, this is good news from the government after months of inaction.”