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14 Jun

What Things Have An Effect On Business Gas Prices?


Energy prices seem to have fluctuated quite a lot recently, with many business owners being frustrated by the changes. Rising electricity and gas prices mean that they have to pay more, while cheap business energy prices make money management unpredictable. This is why it is a good idea to know a little bit more about business gas prices and what affects them.

Supply and Demand

The first factor that affects cheap business gas is the traditional concept of supply and demand. Gas is bought, sold, and then transported in large amounts. How much of a supply of gas there is will affect the price of gas. When there is demand for gas in the UK and it isn’t available, then the price will go up as will the demand. However, when the gas supply in the UK outstrips demand then gas prices may be lowered.

Gas Storage

The UK’s biggest gas storage site was closed down in 2017 which meant that we dropped from having fifteen days’ worth of gas in storage to just four or five days. This has had a huge effect on gas prices especially in 2018 when we suffered from a particularly cold winter. A warning of gas shortages saw the price of gas shoot up to its highest level in more than 10 years. Although the UK government has been urged to take a closer look at its gas storage plans although it believes that a combination of LPG tankers and gas pipelines is more than sufficient.

The Pound

Gas prices are affected by fluctuations in the value of the currency and as we buy a lot of gas from Europe which means that the price that appears on your gas bill will reflect the strength of the pound. In recent years, the strength of the pound has dropped to an all-time low, which has led to rises in gas prices that will have been reflected in your business gas bills.

Wind Power

We create more energy from offshore wind generators in the UK than any other country, with Britain alone accounting for over 40% of the global capacity for wind-generated energy. On less windy days natural gas needs to be diverted to power stations which will result in an increase in prices.

From changes in how we get gas and produce energy to global disruption means that gas prices are always going to fluctuate. Not all of these changes will affect every business but it is always worth keeping an eye on the bigger picture when it comes to cheap business gas and cheap business electricity costs.

Get the best prices and deals on your business energy with D-Energi.

Require Assistance?

We take pride in our commitment to providing the most competitive rates for business electricity and gas. If you are seeking guidance on how to effectively reduce your business electricity and gas costs, or require assistance with a business energy switch, please call our dedicated Customer Services team at 0800 781 7626. We assure you that calls will be answered promptly within five rings or less!

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