Winter Is Coming
Autumn is here and soon winter will be upon us. Frosty mornings with a bitter chill that makes anyone want to run back inside and curl up in front of a fire with a cup of hot chocolate. In the past, winter has been generally wet but mild and with winter comes Christmas and everyone starts getting into the spirit of Christmas. This year could be completely different with the prediction of an arctic winter, leaving us all in the dark.
Let us start with the bad news.
First of all it is predicted there could be blackouts in Britain. This is normally said every year to prepare the general populous for that ‘just in case’ scenario and so far most people have been fine apart from the occasional downed power line.
The Press and Journal stated “The UK faces the possibility of blackouts due to electricity shortages in the near future – maybe even this winter. The country therefore needs a strong balanced mix of traditional and renewable energy more than ever.”
This could mean that businesses have to shut four hours earlier every day to help the rest of Britain meet demand. This will ensure that Britain has enough supply to keep the lights and heating on at home. Those who remember the 1980s will of course know all about rolling blackouts and a three day week, with the ongoing pressure of unions and the Thatcher government. However, this winter’s problems will not be due to political tensions between two parties but due to the weather. This winter has been predicted to be quite brutal and harsh.
Of course with a low supply and increased demand this would indicate that prices would rise rapidly, especially this winter.
So what kind of weather are we expecting this winter?
TheExpress said “January is currently showing signs of temperatures hitting “record-breaking” lows meaning parts of the country could see the mercury plunge to -27C (-17F).”
If this was to occur then we are all in for a pretty cold winter and this could cause some severe problems for the UK, which could include blackouts. There is also a chance of“persistent snow, freezing gales and sub-zero temperatures.” - Source: The Express
This prediction seems to suggest that we are not escaping this Arctic winter, which is expected to hit us within a few weeks and we would urge people to prepare for winter.
So, now onto the good news.
Yes we said earlier in the piece that prices are likely to rise, due to cold weather affecting the demand for electricity and gas and low supply. However, in a news story it was suggested that the Big Six will be freezing their energy prices this winter. This of course is good news as no one wants to receive a higher bill for the winter periods. Ofgem have urged the Big Six to lower their prices, because of wholesale energy prices hitting a four-year low this year. However, it does look like prices will stabilise.
British Gas, SSE and E.On have stated that they will not be increasing prices this winter. We are still waiting on the rest of the Big Six but it is predicted they will follow suit.
Our Senior Pricing Analyst, Sam Lowe had this to say “This year we have seen the tensions between Ukraine and Russia really affect the energy markets due to European gas supply concerns. I think if this agreement can be finalised this will be great news for the winter ahead as a huge proportion of Europe’s gas comes through Ukraine from Russia. With any potential disruption eliminated, traders would have much less concerns when gas demand is high, as we typically see this in the winter months.”
We recommend that you start searching around for the cheapest deal for both businesses and households. This will help you find the best market price. We can assist with business switching as we source our prices from several suppliers, both Big Six and independent, to provide your company with a wide choice. This will help you assess how much your estimated bill will be for the coming year and which company you can save most with.
Winter is coming and it is definitely time to prepare.