Over the last six months, we have seen global oil prices tumble due to several factors such as an oversupply of Liquid Natural Gas (LNG), a slump in the Asian gas market and an OPEC policy of keeping their own oil production high – all of which have contributed to flooding the market with cheap oil. This has had the knock-on effect of a reduction in the price of gas and electricity too.
Because gas prices are linked to the cost of oil and with nearly half of the electricity produced in the UK is generated by gas, electricity prices have also seen reductions but to a lesser degree. Unlike gas, the actual energy component of electricity only makes up around 65% of the price because other costs such as transmission, metering and green taxes make up the rest – and they have been increasing.
It makes economic sense to take advantage of the current energy prices
But why does this matter to museums? Energy costs are one of the biggest bills that museums have to pay, so it makes economic sense to take advantage of the current softer prices. There’s no guarantee that prices won’t fall further, and there are a number of factors that could cause them to go higher, but the AIM Energy Action Group can advise you on the best tariffs and suppliers and help you to lock your prices up until April 2021 thanks to our Fixed Term Procurement which provides long term price certainty.
The AIM Energy Action Group is free to join for all AIM members and it can help to you to review your energy bills, gain competitive quotes and join a bulk energy buying basket to reduce your costs further. For more help, or if you have any questions, please contact Ken Shaw on info@AIMEnergyActionGroup.co.uk or by calling 029 2025 9560.
Download more information about the July 2016 AIM ENERGY ACTION GROUP (EAG) Gas & Electricity Buying Basket