Reviewing Energy Bills
By reviewing your current energy bills we can establish whether your rates and billing are correct, if your meter profile and charges are right and that you are being billed according to your actual consumption. The bills will also reveal your contract end date and what period of termination is applicable.
Bulk Energy Buying
Unless you are a large organisation with the resources to contact lots of suppliers and monitor the market it is unlikely that you will have the time or the sheer determination to go through what can be a long, confusing and tedious process.
There are a number of fundamentals when obtaining energy prices, some are simple, such as where you are located and how much energy you use. Others relate to the time of the year you apply for pricing. Did you know that purchasing energy during winter months could cost you more? Here are two of the biggest factors that can affect the prices you are offered.
Basically, the more the better! If you are an organisation with several supplies, you are much better off by getting all the contracts renewed together. The suppliers are more motivated by larger volume. The Energy Action Group will organise a Group contract for you in the first place to help you with this. By scaling up this concept and pooling the energy consumption of many organisations then the priciple can be maximised.
What is the key to achieving this?
Ideally, all supply contracts should have the same contract end date. This is called co-termination. By harmonising the end dates of all members contracts a bulk energy basket is created. For example, The Energy Action Group will be tendering the gas and electricity supplies of 140 organisations this year and they all the same contract end date.
How are dates synchronised?
Suppliers are generally only interested in providing 12, 24 or 36 month terms which means that the anniversary is retained. In contrast, the Energy Action Group requests contracts of varying terms with the date of July 31st stipulated as the contract end date. This can mean that you will be offered various terms, for example, ranging from 5 months through to 14 months until all your contracts are aligned. Not only will this bring you in line with the other members but could also save you a lot of administration when dealing with mulitple supplies.
It has to be said that obtaining the best energy prices for any organisation is a basic principle, however, there is another, more important action to undertake, and this one will save you more and for longer. That is by reducing your consumption.
A reasonable target is 10%. The first step is to take advantage of the latest Smart Metering advances. Simply by monitoring the time and amount of energy you use throughout the day could save you hundreds, if not thousands of pounds.
Can I bring in all my contracts at the same time?
It is not widely know but it is possible to enter into an energy contract or supplies that are not terminating for anywhere up to 3 or 4 years hence. A major YMCA Group recently added all their supplies to The Energy Action Group with contracts ending from anywhere between 4 and 43 months. All the supplie were placed in the basket and ultiately they will all be picked up upon their renewal and end up with the same end date (aligned with the rest of the members).
Surprisingly, seasonal conditions affect energy prices, even though they may run for 2 or 3 years.
I have a sizable gas consumption and I have to renew my contract in early April. I have to attend to this in February and can't leave it beyond the end of March.
I approach a number of energy suppliers with the details. Unfortunately, there are adverse weather conditions and it has caused the market to jump due to an increase in demand. This has caused prices to increase. The increase is also felt in the electricity market because around 50% of UK power is generated by gas-fired power stations.
In order to avoid unforeseen adverse weather conditions the Energy Action Group has chosen the contract end date for all its members of 31st July thus mitigating the possibility of adverse weather.