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A quick word about the energy markets

Despite all the impact of Covid-19, energy prices have been marching upwards as other global commodity prices rise.

Demand for LNG in Asia in particular has been pushing the price up as less LNG is finding its way into the UK.

Prices are now at an annual high point, though there remains room to increase relative to the previous high point in Sept 2018.

Future view

Currently there seems more reasons to believe that prices will continue to increase, particularly if immunisation programmes are successful and the global and UK economy recovers and increases demand. However, relatively speaking price are progressing to a notional maximum in historic terms. As price rise the chance that this will continues will recede. If you have contracts still open for 2021 and early 2022 we would recommend looking at price now.

Energy supplier update

After the chaos of Q4 2020 the supplier market has settled down with no major B2B suppliers failing. However, the fall out of the failures in Q4 may be significant due to unpaid Renewable Obligation fees which will be passed on to customers. Likewise the number of new entrants to the market also seems to have waned!

Credit

The continued impact on businesses of Covid-19 restrictions has pushed some suppliers to toughen their stance on credit checking, with some suppliers taking a blanket approach to affected sectors in particular hospitality, leisure, non-essential retail. If you have concerns about credit, there are suppliers with a more relaxed approach which Auditel can help you find.

Sustainability

Though the businesses have enough on their plate at the moment, the pressure being applied by governments, supply chains and customers on customers to demonstrate good sustainable practices has not diminished.

In fact, many see the crisis as a launch pad to change our view of sustainability.

The fact is that businesses should not see adopting good sustainability practice as a burden or a cost. Businesses that have embraced sustainability are proving to be more resilient through these turbulent times.

The concept of sustainability is a broad and often overwhelming concern.

All businesses need to develop a clear understanding of their impact on the environment. For many businesses this can be a complex process – but with the right approach it is possible to establish a baseline and a coherent plan to reduce this impact.

Auditel’s team of experts can help businesses understand the opportunities and threats that they face as we head towards a Net Zero world.


Article by: Chris Barrett

As seen in Issue 8 of The Bottom Line