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How the Pandemic Impacts Energy
COVID-19 is still with us. From the perspective of energy buyers, the pandemic’s effects will continue to shape markets. However, the promise of a vaccinated population means that a “return to normal” is coming.
Consumption Will Take Time to Reach Previous Levels
Estimates suggest that 2021 will see reduced electricity consumption – by about 3-4 percent in the first half of the year and 1-2 percent in the second half – compared to pre-pandemic levels. 2020 saw greater reductions, but the gradual vaccine rollout and reopening of businesses mean that energy use will likely take the full year to steadily reach previous levels.
When it comes to natural gas consumption, the pandemic’s effects have been less pronounced because much of the early lockdown period came during the summer months when most businesses don’t heat their facilities. In addition, many large, gas-intensive businesses were among the least-affected by COVID-19. Given these factors, gas consumption is expected to be 1-2 percent below pre-pandemic baseline levels in 2021, with 2022 forecasted to bring a full recovery to the sector.
Organizations May Need to Consider Different Energy Strategies
For business owners – large and small – their next energy purchase decision may look different. Rather than looking to past results for guidance on their next purchase, businesses should consider demand-based and consumption-based costs separately and make decisions that account for the variable pace of economic recovery. Energy purchases sometimes allow for layering. This protects a buyer from risk while also taking advantage of lower prices when the market dips.
While most businesses experienced a challenging 2020, the recovery from the COVID-19 crisis is an opportunity to reevaluate your energy strategy. With demand for electricity and natural gas poised to rebound in 2021, business owners might take this time to step back and weigh their business’s options to ensure a prosperous year to come.
About Direct Energy Business
Your energy needs are unique. It’s time you had an energy supplier that treats you like it. From small businesses to large enterprises, organizations need solutions to buy and use energy in ways that meet their unique needs. Direct Energy Business is the energy supplier with tailored plans and solutions for operations of every size.
They are committed to leveraging their size and strength to deliver solutions that help make their customers’ businesses better across North America’ energy markets. Direct Energy Business serves commercial and industrial customers in 24 U.S. markets and eight Canadian provinces, providing electricity and natural gas supply and energy management services. They are part of Direct Energy, North America’s largest competitive retail energy supplier, serving more than five million customers across North America.
About Broker Online Exchange
Broker Online Exchange (BOX) is the largest and most flexible retail energy network in North America. We satisfy the needs of commercial customers, energy brokers, and affiliates by providing direct access to North America’s top suppliers, markets, personalized support and payment plans.
For commercial energy customers, BOX offers access to the largest and most experienced broker network in the country. We connect customers to professional, specialized energy brokers will help satisfy your energy needs with the industry’s best prices. With over 10,000 customers served across every market and industry, we know how to help each customers’ specific industry and market combination like no one else.
If you have any questions about our industry-leading energy consultant, referral partner opportunities, or to work with commercial properties looking to save on energy bills, please contact us today!
