UK’s Biggest Gas Broker’s Dilemma and How it Affects Business Owners
Following the recent movements of British Gas and how it has handled recent regulations on the energy price cap and questionable responses towards natural disasters have let its customers suffer financially. Being the largest energy supplier in the UK, it has made business owners left and right take a stand against British Gas to look for another energy provider for their commercial needs. Things are slowly spinning out of control for the UK’s biggest gas broker as gas prices continue to rise indefinitely, leaving smaller companies the opportunity to clean up the market.
Slightly unpopular business decisions
Centrica, British Gas’ owner, previously released a statement revealing their intended shedding of 4,000 jobs by 2020 in coordination with a cost-cutting solution they’ve come up with, to go against the government fluctuating energy price cap together with the weather of the market. British Gas reported a fall of 17% in their profit leaving them with £1.25 billion in 2017. Later that year, British Gas increased their electricity prices, just after a 12.5% hike in September the past year, with a 5.5% increase to both gas and electricity prices resulting in customers needing to pay up to an extra £1,161.
Consistently blaming tariff rates and the government’s energy price cap, the recent management changes have become a poor solution to the crises, leading GMB, the union for gas workers, to reprimand Centrica in their poor choices resulting in the cutting back on workers in the hopes of resolving the market crisis.
What it means for commercial businesses
More and more customers have been leaving British Gas, blaming their disregard for union employees and the succeeding disappointing rise in energy prices. Loyal customers have gone to look for alternative choices for their commercial businesses by scouring the market for cheaper and more affordable services. Some have turned from the biggest energy provider in the UK to smaller providers through the help of energy consultants that can be reached online through services like Utility Bidder, giving a possible market demand to the thousands who have already or are planning on making the shift in service provider.
Where the tide will go for British Gas from here
The danger that British Gas presents is its identity as the leading energy provider in the UK. Giving the option to other companies, price consulting websites are keeping a keen eye on other energy companies which they believe will also take the British Gas “example” as an opportunity to raise their prices as well. No amount of speculation can predict how high the prices will go from here. Energy companies’ liberties in changing bill computations have become one of the ways to raise prices without getting as much of a stern look from the public. Since a business juggernaut like Centrica was able to use the global market’s changes and the government’s energy price cap, it seems as if the smaller business can attempt to do the same in order to solve their own price dilemmas.