SME energy prices increase 18% over the last year

SME energy prices increase 18% over the last year: The latest figures from Cornwall Insight’s SME Power and Gas markets reports shows that energy prices for small and medium enterprises (SME) new contracts had increased 18%* over the last 12 months when power stood at 15.22p/kWh and gas at 3.23p/kWh.

Over the past quarter, prices have increased by 5.7% at the PC3-6MWh consumption point and 10.4% at the 25MWh gas consumption point quarter-on-quarter.

Sam Holland, Analyst at Cornwall Insight, said:

“The last quarter has certainly been a busy one for suppliers with them reissuing pricebooks more readily, with 14 of the 25 suppliers analysed releasing pricebooks with amended prices over the reporting period.

“This difficult pricing environment was also coloured by the continuing trend of some suppliers stopping the acceptance of contracts from specific sectors, removing product offerings and amending credit policies.

“The increases this quarter come at a time when day-ahead power prices rose 108.5% to £94.20/MWh between October 2020 and January 2021. Day-ahead gas contracts averaged 60.25p/th, up 57.8% on October 2020 (38.17p/th on average).

“Looking ahead, day-ahead wholesale prices since February have averaged 47.13p/th for gas, down 21% on the January average. Power has also seen a 40% reduction to its average to £56.23/MWh. It will be interesting to see whether this drop in wholesale prices will have affected SME propositions in the next quarter.”

SME energy prices increase 18% over the last year

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