Estate agents warned not to get stung by branch energy hikes

Estate agencies could be costing themselves a small fortune by not reviewing the UK’s spiralling energy costs, switching platform Muuvo has warned.

Earlier this month the government updated its energy relief guidance for business users and how discounts will be applied to business energy usage between 1 October 2022 and 31 March 2023.

COST LINES

Jamie Parks, Director of the energy switching platform, says: “In my opinion, businesses should be reviewing all of their cost lines in detail.

“Premises costs are usually the third largest cost in the property sector behind staffing and marketing expenditure. Alongside rent and rates and insurance costs, energy usage is a significant premises cost.”

The discounts apply to businesses who are on existing fixed price contracts that were agreed on or after 1 December 2021 and businesses signing new fixed price contracts.

Discounts also apply on deemed / out of contract or standard variable tariffs; on flexible purchase or similar contracts and in Northern Ireland on variable ‘Day Ahead Index’ (DAI) tariffs.

DISCOUNT

Parks says that to calculate the discount, the estimated wholesale portion of the unit price you would be paying this winter will be compared to a baseline “government supported price” which is lower than currently expected wholesale prices this winter.

For all non-domestic energy users in Great Britain and Northern Ireland this government supported price has been set at electricity – £211 per megawatt hour (MWh) / 21.1p per kilowatt hour (KWh) and gas – £75 per MWh / 7.5p per KWh.

Inertia has largely meant that little has really changed.”

Parks warns: “Domestic energy users are generally very focused on ensuring they are on the best tariffs and benefitting from the Energy Price Guarantee but our anecdotal evidence of dealing with business users is that there is less focus on the costs of energy in their premises.

“Some businesses have reviewed their usage and made some adjustments such as turning equipment and lighting off when not needed and adjusting thermostats but inertia has largely meant that little has really changed.”