Coronavirus - The opportunities and challenges faced by Energy suppliers

Normally the demand for energy is highest at night when most people have returned home from their jobs and settle in to relax and prepare dinner.

During the day most of the demand comes from businesses and industry. With most of these now closed energy suppliers are going to witness a rise in daytime usage with demand likely to stay consistent throughout the day and night.

Potentially energy suppliers could see an increase in usage and therefore income as many of the offices closed are unlikely to have completely shut down their lighting and heating systems.

Domestic energy usage also provides higher margins for suppliers than commercial power, meaning that for a time, energy suppliers will receive more money, something that will be welcome after the tough winter for many.

Any gains could be short-lived, however. Experts analysing the impacts of the national lockdowns are witnessed in Italy and elsewhere have shown that as a result of mass isolation demand for energy is likely to fall as a result of the closure of heavy industry and commercial properties.

This period of uncertainty could also prove more beneficial for smaller challenger energy suppliers who offer cheaper tariffs to consumers than the Big players.

With more time on their hands and concerns over their financial situations, people are likely to start looking at where they can save money. Those suppliers offering cheaper tariffs will therefore likely see an increase in consumers switching to them.

The big energy companies, on the other hand, could have a tougher time of things due to this increased competition and the lower profits they’ve received following the introduction of the price cap.

Setting up and launching a new energy supply business is always a risky endeavour at the best of times so the scenario in which the world finds itself in shouldn’t deter anyone from wanting to get started.

Entering the retail energy market is perhaps not as complicated as you might think. The proliferation of independent energy suppliers is a testament to how starting an energy company has become far more accessible.

For more information on how to start your own energy supply company and how Dyball Associates can help visit here

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