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10 Aug

What Impact has COVID-19 had on the Energy Market?

by Simon Thompson
 

COVID-19 has had an impact on everyone’s life, and we are all suffering from the economic and social consequences of the pandemic on a global scale. Although lockdown restrictions seem to be easing, it is still too early to really understand the consequences the coronavirus pandemic has had on the energy market, and business energy quotes in general.

Business, in general, has felt the squeeze, with many firms finding their commercial activities have been curtailed since lockdown began, with many countries reporting a slump in GDP. The UK seems to have fared the worst, with France, Germany, Italy, Spain, and the US also suffering too. This general decline in revenue means that it is now more important than ever for companies to have a better handle on their costs and energy consumption in order to ensure they stand a chance of recovering from the impact of COVID-19.

Should I get a business energy quote now?

The last few months have forced many companies to urgently review their expenses in order to navigate their way through the lockdown period successfully, by maintaining financial stability. The Government has tried to help with things such as the Furlough scheme, VAT deferral, and business grants – but a lot of people have neglected to look at one of the most important things – energy costs.

Energy costs are often overlooked, but they are one of the most important supply elements when it comes to the smooth running of your business on a day to day basis – especially if you are in the manufacturing sector. In fact, for manufacturers, energy costs come in a close third behind labour costs and materials when it comes to noting down expenditure.

On the other hand, the global energy market is sitting at a low, the likes of which haven’t been seen for around 70 years. So, yes, now is the time to get a business gas and business electricity quote to take advantage of some of the drastically reduced long-term fixed energy contracts that are currently on offer.

Why has COVID-19 impacted on the energy market?

From March 2020, when the COVID-19 lockdown began, commercial activities dropped sharply and so the demand for energy dropped dramatically as well. Hand in hand with this was a sudden increase in the amount of gas being supplied to the global market, from countries such as Qatar and Russia, as they fight to establish their dominance in the gas supply market.

What should you do?

In order to capitalise on the heavily reduced energy prices, caused by lack of demand and an excess of supply by contacting D-ENERGi to get a new business electricity and business gas quote now. Reviewing the offers that are available in the market at the moment, may lead to significant savings for you in the coming months.