Video: COVID Credit Crunch
COVID19 has had a considerable impact on the UK economy and has resulted in further issues for businesses when it comes to arranging energy supply contracts. Certain industries have been impacted more than others: with hospitality, leisure, tourism and also manufacturing businesses reliant on international trade feeling the effects.
The COVID Credit Crunch is creating a number of scenarios where suppliers are unable to provide businesses with the required credit, which has a knock on impact, with business typically being left with one of three options:
- They are forced to take out contracts with alternative suppliers that might not meet all of their objectives or requirements
- They are forced to pay security deposits upfront, where previously this wouldn’t have been the case
- They are having to accept paying premiums of up to 10-15% on their contracts.
Whilst it depends on the supplier, more businesses are now seeing a requirement for a case to be built on their behalf, in order to prove their eligibility for credit. If you find yourself in this situation make sure you work with an energy consultancy that understands your requirements.
Presenter: David Ford, CTO
Editor: Gabriel Ashworth, Marketing Assistant
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