The most important reasons for this price increase are the increasing demand for gas after a cold winter and the end of the quarantine in Asia.
The race of industry giants to fill gas tanks to respond to demands also caused prices to reach the ceiling point in the UK. All these developments will result in a significant rise in the bills of both energy supplier companies and individual and corporate consumers who receive service from these companies.
What Causes the Crisis in the Energy Market in the UK?
The UK carries out almost half of its power generation processes through gas-fired power stations. The fact that the wind turbines also produced very little at the end of a windless summer further intensified the task of these power plants. In addition, the cessation of the use of the power supply, which was recently brought to the UK from France, made the UK dependent on gas in almost the entire energy production process. Currently, many companies may feel this gas shortage problem in the market even more intensely because of this need.
While the energy cost per unit increases for both individual consumers and medium and small businesses, this increase may not be met by sales. Because it seems that there will be a gas shortage this winter for millions of individual consumers whose money is needed to stimulate the market. That is, increased bills can limit the purchasing power of individual users.
How Are Companies and Factories Affected by the Energy Crisis?
Judging by the current news, the first bankruptcies have already started to come in England due to the market crisis. For example, two different fertilizer factories in the northern part of England stopped their work. In the last five weeks, five different energy providers have declared bankruptcy. This means that more than half a million individuals create demand in the market to find new energy providers. With the increasing demand, prices are also rising rapidly.
What Precautions Are Small and Medium-sized Businesses Taking Against the Energy Crisis?
Small and medium-sized businesses seem to have to minimize energy bills to survive this winter. Many businesses work with brokers that provide extra discounts on the tariffs they receive from energy providers. At Paymentap, we offer several promotions to protect our business partners from astronomical price increases:
- Extra discounts and alternative payment plans on the invoices of companies receiving services from energy companies
- Discounts and alternative payment plans on card machines and telecom bills as well as energy bills of businesses
All of this may help us to get out of the coming periods when gas prices will break new records without bankruptcy. We hope the strong economy of England will make it possible to get over this period as well.