Corona Virus pandemic brings cheaper energy prices…
The Corona Crisis has brought uncertainty and challenges for all, but it has also brought the opportunity to secure a gas or electricity contract whilst commodity costs are the lowest seen in years. It goes without saying that we want to wish all our customers and suppliers a healthy and productive lock-down. Keeping busy is keeping sane during these stressful times. We fully appreciate there are other priorities at this time. Simultaneously, we would be failing in our duties to service our customers if we did not point out the silver lining of low energy prices at this time.
As we all get to grips with the lock down, working routines are disrupted and some suppliers are faring better than others when it comes to their ability to issue prices and secure contracts. Rightly so, suppliers have adjusted their working routines in order to keep their staff and members of the public safe.
In general suppliers are becoming more selective about the businesses they will and will not quote for. Understandably most suppliers are prioritising quotes for their existing customers and key essential industries, healthcare for example. This means you should be able to get a renewal price, but it is not realistic to expect as many quotes from alternate suppliers at this time.
Some Suppliers have:
• stopped quoting for new business, and are solely focused on servicing their current customers.
• restricted quoting to businesses with renewal dates falling within the next couple of months.
• limited the duration of contract they are willing to offer, in some cases no more than three months.
• stopped quoting for businesses in certain categories, such as pubs, restaurants, hotels etc.
Obviously, this situation is evolving, suppliers are monitoring developments and will broaden their quoting to the normal range as soon as is feasible. These quoting limitations are occurring simultaneously with a plunge in commodity costs. With global energy demand at rock bottom lows, commodity costs have tanked too. This means that demand for prices is greater than ever among those customers who have the foresight to lock in contracts whilst commodity costs are so low.
What does this mean for the customer?
• Yes, it is a good time to secure a contract, commodity prices are the most competitive seen in years.
• Plan ahead, we are booking contracts with 2020, 2021, 2022 start dates for customers who are aggressive in taking advantage of these market conditions.
• As we emerge from the Corona Crisis global energy demand will increase, putting upward pressure on commodity costs, so act sooner rather than later to get ahead.
• Customers will not receive the same number of options to chose from, but will have extremely competitive prices from a smaller number of suppliers, quality over quantity.
• Be prepared to review prices and docusign a contract same day. There is not sufficient capacity in the system to accommodate multiple price refreshes or queries, so you have to be serious about securing a contract in an efficient manner. Get approval from your colleagues of your approach in advance, not retroactively.
• Be clear about the type of contract you want, i.e. duration, supplier, etc.
• Work with Direct Power and their Supplier Account Managers in an open and honest fashion. Efficient communication is required more than ever to close business during this time.
• Do not request prices if you cannot get a contract sign off to disrupted working routines at your own company.
We all need some good news at this time. Securing a contract on amazing rates is just the way to help your business weather the Corona Crisis storm. Don’t go it alone, get in touch with Direct Power so they can pilot you through these uncharted waters.
We are here to help, and on a personal note, keeping us busy is the perfect antidote to non-stop worrying about the situation at hand! We are all in this together, so we want to help you come out the other-side with an energy contract that leaves you well equipped to face the coming years. Please get in touch with Direct Power if you need any help getting through this situation.