Suppliers of Last Resort: Businesses affected by the energy crisis

If you’ve kept up with the energy sector at all these past few months, you will be aware of the crisis in the market price of gas, causing over twenty energy suppliers to cease trading or go into administration within 2021. The most recent of which was Bulb, an energy supplier who were responsible for over 1.7 million customers.

In the process of an energy supplier ceasing to trade, the UK’s energy regulator will appoint a supplier of last resort (SoLR), most of these suppliers are often larger energy suppliers with the ability to take on large amounts of clients. Any credit one will have had with their previous energy supplier will be transferred over and supply of electricity and gas will continue regardless of the changeover.

Often new customers will be set up on a temporary or short-term flexible contract which will see an increase in overall price of energy during this rise in the market. For domestic customer, the instated energy price cap will keep energy costs to a limit until April of 2022 when reviewed by Ofgem.

However, for businesses an energy price cap is not ensured and the rates a SoLR charge can be incredibly, doubling initial energy suppliers’ costs to combat the rising market gas prices. Furthermore, increased energy price contracts are inevitable for businesses in need to renew an energy contract with the same energy supplier.

Although all businesses finding themselves in a new energy contract within this quarter will be paying more on energy rates than previously, Intelligent will review your utility bill and utilising our services, find the ideal energy contract for your current business needs. In some cases, SoLR can be the best offer in the energy market, however we can find fixed rate contracts that will secure a consistent utility bill during this unstable time in flexible energy rates,

Get in contact today for a full review.