Canterbury Bid

Low Price of Oil – How does that impact your gas and electricity costs?

We have all read in the media about the low price of oil at the moment – but do you know why that impacts your gas and electricity costs?

Natural gas is frequently found in the same drill sites as oil – and the rigs are capable of extracting both – so if oil is oversupplied the chances are that gas will also be plentiful, and so the gas price is closely correlated to the oil price. In the UK gas fired power stations are used to provide about 45% of the electricity we use, and so a low oil price also indicates cheaper electricity.

So what should I be paying?

That will vary on when you last placed a contract,  and also whether you use a lot of energy or are a small consumer. Business energy is generally available at a lower cost than domestic energy.

As of mid January 2016 in Canterbury if you are on a single rate electricity meter a unit rate below 10p per kWh is a guide that you are on a good rate, and your daily standing charge on this should be below 27p per day. If you are being quoted more than this you should consult a reputable broker.

Gas is more variable on volume but a typical small usage gas rate available in Canterbury at the moment would be around 3.0p per kWh with a standing charge below 25p per day. With gas as the usage goes up so does the standing charge – so beware of looking at unit rate only.

ZTP are happy to look at the energy bills of any BID business and comment on whether the rates can be bettered. There is no commitment to using us, but we hope you will find our service and results such that you will.

Contact Martyn Young for more information – MartynYoung@ztpuk.com

 

You Might Also Like