Expect energy “discounts” after falling oil prices?
With the oil price staying well below $100 per barrel of late, this could have a knock-on effect on UK power prices according to the weekly Y Report from Inenco.
Rob Brown, Account Director for the energy consultancy said: “If it stays at these prices for much longer and production levels stay as high as they are in the US OPEC, that is going to eventually have a feed through effect into pricing in the UK.”
He added: “How low can this market go?”
Touching on how this might affect an energy user’s buying strategy, he said: “If you’re buying on fixed price contracts you need to think about getting some renewal offers in [and] competitively test – because you will see healthy discounts over your current rates.”