Literally didn't explain what a reset is.
Please kindly sign this petition for engery price cap on small businesses.
- Thread starter Things change I've changed
- Start date
Soldato
- Joined
- 22 Jul 2014
- Posts
- 3,900
- Location
- Oxon
Any large business that hasn't spent the last year hedging their future energy consumption has nobody else to blame, to be quite frank. I've been working on this for my employer since last October. Any support for businesses should be restricted to SMEs. Very large businesses will have intimate relationships with suppliers, often direct with generators in some cases, with contracts stretching years ahead.
Our gas has tripled and our electricity doubled even with us hedging (as part of a larger buying group) - ending up somewhere between the current and future domestic caps on an average unit rate basis. Where we end up for the next FY will depend on how often the market dips first on year ahead, the we'll move to take advantage of quarter and eventually month ahead as we get closer, but I'm still predicting another large increase next year.
Smaller business don't have the access or manpower to do that and are at the mercy of their suppliers come renewal.
Caporegime
- Joined
- 22 Oct 2002
- Posts
- 28,291
- Location
- Boston, Lincolnshire
What is your version of a reset then?
OP could provide some details on the previous contract duration/rates and new contract rates,
Liverpool council is being managed by govt,amongst other things because they messed up energy renewal and went on the basic rate (per earlier drax comment)
Real large businesses (funny we haven't heard from them) McDonalds, Amazon are safe (don't fear) locked in on fixed green rates with renewable resources&storage power purchase agreements,
its the small busineeses in the cross hairs
Liverpool council is being managed by govt,amongst other things because they messed up energy renewal and went on the basic rate (per earlier drax comment)
Real large businesses (funny we haven't heard from them) McDonalds, Amazon are safe (don't fear) locked in on fixed green rates with renewable resources&storage power purchase agreements,
its the small busineeses in the cross hairs
Soldato
- Joined
- 3 Jun 2005
- Posts
- 3,278
- Location
- The South
To be honest, no one way has given a straight answer showing exactly what a "reset" would consist of and how it would achieved.
You can't say we need a "reset" and then ask what someone else would do when questioned what your version of it is
How do we (the government) go about normalising interest rates and debt?
Caporegime
- Joined
- 22 Oct 2002
- Posts
- 28,291
- Location
- Boston, Lincolnshire
To be honest, no one way has given a straight answer showing exactly what a "reset" would consist of and how it would achieved.
You can't say we need a "reset" and then ask what someone else would do when questioned what your version of it is
How do we (the government) go about normalising interest rates and debt?
reset is a word and everyone has a different interpretation of what it is. I take it by being the big boy and putting it in quotation marks it means something completely different to yourself?
- Joined
- 27 Jul 2005
- Posts
- 13,122
- Location
- The Orion Spur
I previously provided those details earlier in the thread,
You are correct about the bigger franchises, I'm looking at the possibility of putting our restaurant under the Domino's arm to see if that could help but that is a long shot and not sure if the franchise owner will allow it or if it can be done yet.
Soldato
- Joined
- 4 Aug 2007
- Posts
- 21,990
- Location
- Wilds of suffolk
Maybe but also no
We use crazy amounts of energy so much so we have high voltage coming to site and then its transformed down.
Our broker in the UK earlier this year said that pricing for the future was uneconomic and he suggested not committing. Well he got that one wrong, but hes normally right.
(For us committing is how much we commit to buy, agreeing a price and then being able to sell it back to the grid if we have excess, we normally gain out of this resale, reducing our unit costs)
I suspect many businesses use a similar strategy and approach and brokers and as such its a bit pot luck.
We are looking at a few acres of solar though so not sure if when we will go ahead with that.
Luckily for us we just passed our excess costs on to customers. Will ripple through the food chain.
FWIW we added $1M to just our Q4 forecast recently for expected price rises. All we ever seem to do is add chunks into that bucket.
And even with all that said, whether someone can or should do something is kind of irrelevant, they either did or they didn't
Unaffordability will not care about size and depth of pockets.
Soldato
- Joined
- 23 Dec 2009
- Posts
- 3,280
- Location
- Earth
Signed. I used to work in a restaurant and know how tough it can be.
Soldato
- Joined
- 4 Aug 2007
- Posts
- 21,990
- Location
- Wilds of suffolk
Restaurants will just close until spring - Kerridge
Chef Tom Kerridge says many hospitality businesses are considering "mothballing" through the winter because of energy costs.
www.bbc.co.uk
Associate
- Joined
- 31 Jul 2018
- Posts
- 254
Basically its rather simple, the economy will move away from rock bottom interest rates and inflation will run out of control for a short period before returning to a more natural level. Those who have borrowed will pay the interest or default, be that individuals or businesses. Many of both are totally dependant on the low interests, in turn they knock up prices for everyone. In the markets those who are speculating in businesses which fail to deliver a productive return with lose their investment when those businesses go bankrupt. Rather like 2008 but the economy will go for broke, its sort of happening right now and I doubt the incoming PM will be able to stop it but you never know.
Permabanned
- Joined
- 23 Apr 2014
- Posts
- 23,552
- Location
- Hertfordshire
Quite. For a large proportion of this century the country, developed world, has been running on cheap credit, low interest rates rather than real money. The banks have been most complicit in extending credit to as many as possible for as much as possible while being parsimonious with those wishing to deposit real money expecting some kind of reasonable return on their savings.
Blame lies not with companies or employers generally as they are on the same merry go round as the general public. Money in the bank is not worth much but money lent by the bank suddenly is.
A reset would see a return to 5% typical interest rates, better wage structures, harder to get credit. Knock on effects eventually would see a reduced housing inflation but a more reasonable annual inflation rate RPI of one or two percent.
Effectively deleting everyone else's wealth, because of course they don't think the 'reset' would apply to them. I expect it is mostly pushed around by people with no assets, no pension, no house. Nothing to lose and they blame the world.
Interest rates need to move higher to close the gap with inflation. So we end the era of cheap debt and free money and those reliant on it will fall away naturally.
Associate
- Joined
- 29 May 2014
- Posts
- 402
If all our energy was green then the entire population would be living in concentration camps, because green energy = 0 human activity.
I don't think everyone has nothing. It's a bit of sticking it to the rich and not really having any concept of the chaos, death etc of complete break down.
"it'll level the playing field" isn't really a thing we've ever had
yes, missed it - water under the bridge were/are contracts done annually ?
partial mothball - depending on restaurant type could you open just during most lucrative xmas period using pre-booking,
or weekend opening if/can electricity rates can be cheaper, but I guess food use is then inefficient, maybe facility heating too.
reset - how about restore income equality with european neighbours - the middle low income families have been slowly cooked like the proverbial frog