Here is how I see the situation: - Significant price increase for electricity and gas in the UK. We are talking about double the cost of a utility bill for an average household compare to a year ago. Yes, double. - If this happens in residential, it also happens for businesses. - Small business are really having it tough, think dry cleaners, restaurants, etc. BID customers, with multi sites, are also very likely to see more money spend on utility bills, not sure if the UK government will cap the bill cost for that type of businesses.
How I see BID having even more relevance: - Multi site businesses want to make sure the bill match the reader, because now a small error can really have a great impact. We are in an environment where prices have increased significantly. - Plenty of energy retailers are going bust, all pressured by the wholesale price. Multi site businesses needs to find the best price with the remaining retailers. A few pounds cheaper here and there will have an impact on the final bill considering today’s energy cost. - It will take significant reform in the UK energy market (the last one was around the 80’s) to see the energy price going back to more reasonable levels. This will give BID time to keep growing in that market.
I believe it is bad for consumers, especially for retirees at this time of the year. However it creates a compelling argument for BID when selling the solution to multi sites businesses.
What is your take on this view?
BID Price at posting:
24.5¢ Sentiment: Hold Disclosure: Held
