Farmers and growers should consider fixing electricity and gas prices now to protect against soaring production costs, according to rural consultant Savills.
Energy prices have already reached record highs, and are likely to continue increasing as demand rises, warned rural surveyor Tom Rattray.
He said: “Wholesale energy prices have jumped by 30 per cent since December, and all the major suppliers are warning of imminent price hikes.
“People who have not checked their contract recently could find that they are paying significantly more than expected. However, there are still plenty of deals to be had, if you shop around. Variable rates may look the cheapest right now, but with further price rises on the cards, farmers may prefer to minimise risk and opt for a fixed rate contract instead.”
It is not always necessary to switch supplier to lock into a better deal, he adds. “Some people may be locked into existing contracts - but most suppliers will let you change tariff without incurring a fee, as long as you stick with them…
“Many of our clients are considering installing solar panels, small wind turbines, or biomass boilers. With the feed-in tariff and renewable heat incentive, these projects look extremely appealing; and as energy costs increase they will be an obvious move for many landowners,” concluded Rattray.
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