This October and November we have seen a lot of questions from clubs with regards to how the price cap will affect them. Suppliers have struggled to build in the discount into their billing systems, so many clubs will have to pay their October bill in full and receive a refund in later months. The government did release some figures with regards to the potential discount clubs will get, these are based on when your contract was signed and are available on https://www.gov.uk/government/publications/energy-bill-relief-scheme-discounts-for-fixed-default-and-variable-contracts

The government are still recommending that all businesses go into a contract, rather than sitting on a variable tariff. Suppliers can put these up at any point, and you may not know until your bill comes through. With suppliers putting out of contract rates at over £1/kWh, costs could be astronomical.

The energy market has seen large drops in recent weeks, with the mild October and European gas storage almost at 100%. The UK has seen its warmest year since 2014, this has reduced the demand for gas and fossil fuels to meet the UK’s energy demands. The EU have secured regular shipments of LNG from alternative suppliers, becoming more independent of Russia. This has given the future market for winter 2022 more security, enabling suppliers to offer better pricing.

With temperatures expected to fall in the coming weeks, we are recommending clubs look to sort out their contracts as soon as possible. As when temperatures drop, we see increases in wholesale pricing. Suppliers are still wary of offering long term deals, with most suppliers keeping to 12 month terms. 

The GMG Energy Club are working on delivering a net zero carbon solution to all clubs. We are now offering scope 1 and 2 carbon reporting with every live contract secured through the Energy Club. This will enable clubs to recognise their carbon footprint, and put in place solutions to become carbon neutral.