In the midst of a challenging economic landscape, the escalating costs of gas have left small businesses grappling with exorbitant energy bills.
However, a glimmer of hope has emerged for business owners, as gas prices have recently receded to more manageable levels.
While this may be temporary respite, it underscores the need for strategic planning and contract management.
The Ebb in Gas Prices: A Temporary Relief for Businesses
Plummeting gas prices have arrived like a breath of fresh air, after a prolonged period of punishing inflation. This welcome change has seen gas prices sliding back to levels unseen in over a year.
Moreover, as we approach the warmer summer months, this could bring relief to those who have been struggling with their heating bills.
However, for certain sectors like hospitality, the usage of gas isn’t necessarily seasonal, underlining the significance of this price drop for the business world.
Navigating the Energy Conundrum: Advice for Small Businesses
This temporary dip in gas prices presents an opportunity for businesses to strategise and potentially safeguard against future price hikes.
Business owners may be asking themselves whether to secure a long-term energy contract whilst prices are currently suppressed, or take a gamble and wait for prices to fall further.
Given that Goldman Sachs have recently projected gas prices to triple this winter, awaiting further decreases could be risky.
If a favourable contract – offering today’s lower prices for an extended period – can be secured, it might be a prudent move.
However, scrutinising the terms of existing contracts is essential. If exiting a contract incurs minimal costs, switching to a better plan might be worth considering.
Keep in mind that it’s vital to balance potential savings against any early termination fees.
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