Coronavirus – impact on the energy sector
We are living in unprecedented times. A common uniter is our collective concerns about Coronavirus; right across the globe.
On top of the stark health concerns, there is the economic impact. The geo-political and economic landscape is threatened. Demand for oil is in decline and OPEC has recently cut supply by 400,000 barrels a day * Smart Energy. Oil has been particularly impacted as both people and goods have been prevented from moving around due to the pandemic.
Security of supply is also a concern as oil productivity reduces, movement is scaled back … and Saudi Arabia and Russia square off. The threat to businesses is very real, but so are fears over the future.
Pubs, restaurants, bars are all unsure what to do over the coming weeks and months. They have not formally been ordered to close and therefore their eligibility for insurance claims is doubtful. SME businesses too will have serious concerns, as they are starved of their regular custom.
Chancellor Rishi Sunak announced a £330bn package of measures to pull business through the crisis, with the intention of focusing support on small and medium sized ones. This will provide some welcome news and relief.
In these concerning times we are thinking of our customers. We are here to provide all the support we can. Wherever work is being conducted – home or the office – business energy costs may be proving a concern and we can advise and guide businesses as they navigate these troubled times.
We cannot change the macro-economic picture. But we can put in place measures to reduce energy consumption and costs. As uncertainty deepens, having some clarity over future fiscal outlay will help businesses through these times.
If you need to get in touch we are here – +44 (0)3 300 300 800.