Electricity Supply Contracts
Do you want access to highly competitive prices from a wide range of suppliers?
Electricity costs are a significant expense for most charities and overpaying is costly.
Rising environmental and infrastructure costs have driven prices higher over recent years. But don’t despair, there are a number of effective strategies that can help minimise these increases and reduce your total energy costs.
Participating in the EAG buying group can help you obtain highly competitive prices from a wide range of suppliers.
Find better electricity prices.
Switch Electricity Supplier?
Not all Business Energy Suppliers suit all types of business. Different UK Business energy suppliers favour different business sectors and can provide market-leading energy prices for those that match their criteria.
If you pick the right one you are more likely to get better prices. Certain suppliers can provide excellent gas prices but are not competitive for Half Hourly (HH) electricity supplies. Others favour high consumption electricity but are expensive for smaller electric supplies. Identifying which ones to approach in each given situation is key.
Electricity Supply Contracts
How do I know which Contract is right for our Charity?
It all depends on what type of business you are, shape of electricity usage, type of electricity meter and your appetite for risk. The EAG will take the time to understand what offers the best balance between price and performance.
Energy suppliers will take a view on your business, and if they like what they see, they can be more competitive on the unit rate and standing charges.
If you are a heavy electricity user with Half Hourly Meters, operating some evenings and weekends and have periods of intense energy usage, you will need a bespoke price from a select group of suppliers. You will need your Half Hourly (HH) data for suppliers, site profile and credit rating.
For smaller electricity users we can obtain prices almost immediately, and once credit risk is approved the supplier will accept the contract. We will guide you towards the most appropriate contract and supplier.
The Energy Market is continually changing and with legislation and taxation being regularly updated, it pays to know what impact your decisions may have on your business, now, and in the longer term. We will explain the differences between the various and competing offers, and how they could impact you.
Commercial Electricity
How do I compare commercial electricty rates?
Business electricity prices have risen constantly over the last decade and represent a major cost for many UK businesses, so don’t accept a renewal price from your electricity supplier without checking you can get a better tariff elsewhere.
There are a huge number of suppliers to choose from, so finding the best deals on business electricity can be complicated, tedious and time consuming.
We will compare business electricity prices for you from hundreds of tariffs in seconds, helping you make the right choice and secure a the best deal.
Commercial Electricity Rates
How Can I secure the best rates?
Be prepared to act quickly, if needed. Timing is crucial. Things such as weather and political disruption can quickly affect market movements. If the price is right, you need to be ready and able to move immediately. This means suppliers have all your details logged and you have passed their credit controls.
Electricity tariffs can be withdrawn or increased within hours. When the price looks good, accept them. Waiting around to squeeze extra savings may cost you.
Tip:Â Be sure to shop around and try and select the electricity supplier that favours your business sector.
How to cut Charity Energy Costs?
Eliminate Energy Wastage
Cutting fractions of a penny from electricity rates may seem like the only option to reduce costs, but cutting energy consumption is a far better way, providing long term and enduring benefits.
Only 35% of electricity bills is now made up of electricity. The balance comprises environmental taxes, transmission costs and metering and distribution charges. Cutting consumption would influence all these charges with the added benefit of reducing carbon emissions. So, consider taking action with some of the many tools available to you to cut your energy usage.
The EAG wants to help you accomplish this by learning about you, your energy processes, your sites, and your ambitions on your energy journey.
Half Hourly Electricity Meter Prices
How do I get the best prices?
Half Hourly meters require tailored Electricity quotes. Suppliers will analyse the previous 12 months of half-hourly consumption data, carry out credit checks and evaluate your max-demand and site capacity.
Once we have processed your supply details and obtained your consumption data, we submit your tender to a range of suitable suppliers.
The Ofgem P272 scheme has forced many organisations of all sizes, to convert from Non-Half Hourly (NHH) supplies to Half Hourly (HH) supplies. A Half-Hourly electricity meter is a class of metering system which employs Automatic Meter Reading (AMR) to generate consumption data. There are two objectives to this. The first is to help balance the national grid as we are increasing reliant on intermittent renewable energy sources. The second aim is to help consumers gain an insight into their energy consumption data to find ways of reducing it. These are both admirable and helpful objectives but come at a cost. The meters provide more accurate electricity bills and are so named because they automatically report on electricity consumption in half-hourly increments.
More importantly, they provide they provide the key in finding areas of energy wastage. Used in conjunction with a good Energy Management system, they become a powerful tool in cutting energy wastage and reducing carbon emissions.
Half Hourly (HH) Meter
How do we know if we already have one?
Your meter profile forms part of your Metering Point Administration Number also known as MPAN, Supply Number or S-Number. It is a 21 digit reference, used to uniquely identify electricity supply points. The gas equivalent is the Meter Point Reference Number.
The profile class is indicated as the first two digits of the top line. You should find your MPAN on your electricity invoice. If you can’t, just contact The EAG.
How do I find my Site Capacity?
Site Capacity is generally to be found on your electricity bills and is denoted in kVa.
Your capacity is established between you and your Distribution Network Operator (DNO). They will agree an appropriate level cope with the demand related to the equipment on site.
Site Capacity requirements change frequently over time and many HH electricity users are paying substantially more for their allocated site capacity than they need.
The EAG can check to ensure your allocated capacity matches your site demand. This can lead to significant annual savings.
Looking for 100% Green Electricity?
Are you committed to helping the environment and demonstrating your sustainability credentials?
If so, make sure you identify 100% certificated Green Electricy with a REGO Certificate. The EAG only deals will full authenticated green energy suppliers.
What are REGOs?
All electricity suppliers in the UK have to disclose how the electricity they supply has been generated. REGO (Renewable Energy Guarantees of Origin) certificates provide proof that the electricity purchased comes from a renewable source.
Although Green customers get their electricity through the national grid as normal, it’s matched to REGOs allocated by Ofgem. So the electricity you buy is deemed to be 100% renewable energy. The scheme, which is administered by Ofgem, is designed so that for every megawatt-hour (MWh) of renewable electricity produced, Ofgem issues one REGO to the generator. These certificates certify that the energy is green.
However, some energy suppliers buy their electricity from the wholesale market then purchase enough green certificates to match – without actually buying any power from renewable generators.
We offer Fully 100% renewable energy products that allow charities to report zero emissions for their purchased electricity. This means we can help you demonstrate your company’s renewable credentials and show your positive commitment to sustainable values by choosing green electricity and green gas.
Note:Â Are you sure that your Green Energy Supply Contract is really what it says it is?
What is a Micro Business?
The two categories are treated differently under Ofgem rules. Micro Businesses have levels of protection not available to non-microbusinesses.
AÂ Micro Business is defined as:Â A non-domestic consumer that meets one of the following criteria:
- employs fewer than 10 employees (or their part time equivalent)
- Uses less than 100,000 kWh of electricity per year
- Uses less than 293,000 kWh of gas per year
- Generates a yearly turnover of no more than 2 million euros
Ofgem rules enable micro business customers to submit termination notice at any time during their contract period, in order to stop suppliers requiring termination notice only during a narrow time period (typically 30 days). Suppliers must also clearly state the contract end date and notice period on bills and statements for micro business consumers on fixed term contracts. You are deemed to be a Micro Business if you meet any one of the above criteria. Otherwise you are treated as a Non-Micro Business.
What happens if my Charity is classified as a Non-micro business?
Non-micro businesses are not protected under the above safeguards and need to be vigilant as to the terms of their contract renewals.
There can be significant differences when quoting gas and electricity micro and non-micro businesses. Generally, micro businesses can be quoted more quickly with published supplier prices that meet most needs. Non-micro businesses often require bespoke pricing. This can take up to 5 days for some suppliers as they need to analyse the supply details thoroughly.
Deemed Rates for Electricity & Gas
What are they?
All electricity and gas contracts are subject to automatic rollover terms. So, make sure you submit your Termination Letter to your current electricity supplier before signing a new one.
If you do not terminate your contract you will be placed on Deemed Rates, also known as Rollover Rates. These can be as much as double your current tariff.
What are Contract Renewal Letters?
Suppliers send contract renewal letters to Micro Businesses but not to Non-Micro Businesses. If you are a Non-Micro Business, you need to terminate your current electricity agreement proactively. Contract Management is part of The EAG’s client service and we can manage these processes on your behalf.
We suggest you do NOT accept your supplier’s renewal offers as these are generally above prevailing market rates. The EAG will check the whole market for you. Invariably, we are able to improve on an electricity supplier’s renewal rates.
TIP: Make sure that before switching occurs, your current contract runs its full course before moving to a new one.
Multi-site Electricity Pricing
How Can I manage it?
If your organisation operates multiple sites with multiple meters you already know that managing utility contracts is time-consuming and complex. Every time you renew or re-negotiate your contract terms and prices you need to dedicate time and energy to ensure all site, consumption and meter details are correct and then navigate between competing suppliers. Preferably, all your supplies should be consolidated into one single tender with a single start and finish date for all your services. If not, The EAG can co-terminate all your supplies which will lead to efficient and rapid tendering.
The EAG can help you identify and organise all your supplies and submit tenders for multiple electricity and gas supplies to a range of suppliers.
Do you have more than 3 sites and would like a Multi-site gas and electricity quote?
Non-commodity Costs for UK Electricity
What are they and why am I paying them?
Non-commodity costs are the charges not directly related to the cost of wholesale energy and are set by third parties such as the National Grid and the UK government. They are out of the control of the energy supplier.
They now make up an ever-increasing share of the total electricity price. The chart illustrates the increasingly complex composition of electricity charges.
The charges can be categorised into two types:
- Network charges and security of supply
- Environmental charges
How can I Save Money on Electricity Bills?
You can save money in various ways to reduce your overall yearly electric invoices.
1.Switch Energy Contracts Regularly
- Switch to the cheapest available electricity tariff by using The EAG’s comparison services, but remember, price isn’t everything, customer service and reliability are also to be highly valued.
- Switching annually is the most common choice, but when prices are low it is sensible locking in for the long term, up to 3 or 4 years.
2. Pay for your electricity by Direct Debit
- Always pay by Direct Debit. Discounts of up to 6% are available.
3. Become more Energy Efficient
- Basic energy efficiency measures in your organisation could cut by an additional 10% and sometimes a lot more. Solutions range from changing human behaviour to updating obsolete and inefficient electrical equipment.
4. Manage Your Electricity Consumption
- Take advantage of energy management systems that analyse electricity consumption levels and patterns. These systems increase invoice accuracy and help reduce your consumption. Consumption data highlights when and where gas and electricity is being used allowing you to refine your processes, adjust working patterns and decrease costs.
5. Don’t believe the hype about Business Smart Meters!
- Get an Electric Smart Meter Installed and with professional help, you could save thousands of £s a year and eliminate estimated bills. Electricity and Gas Smart Meters provide regular accurate readings and ensure you’re not overcharged.
Switching Business Electricity Supplier
There won’t be any disruptions to your supply when you switch between electricity suppliers. Your new supplier will coordinate the transfer with your old one and make all the arrangements for the switch-over. Be aware, unlike domestic electricity deals, business electricity contracts do not have a cooling off period.
You need to make sure you take an up-to-date meter reading and send the final electricity meter reading to your old supplier so they can send an accurate final bill, and an opening meter reading to your new supplier.
The switch should take no more than four-to-six weeks, although it can be completed within 3 weeks.
Moving premises: What happens if I move in without signing a new contract?
If you move into a property with existing utility supplies and start to consume utilities without signing contracts, you will be subject to expensive deemed rates. To avoid this, you should seek a new supply contract prior to occupying the premises.
Moving premises
What happens to my utilities when I move out?
Energy contracts relate to site meter points: MPAN (electric), MPRN (gas). These are specific to the site address. When you leave your current premises, your contract will cease from the day that you move out. It will not transfer to your new address and you will need a new contract. Be sure to take meter readings when you leave your old building and for your new building on the days you leave and enter.
If you are happy with your current supplier, you can contact them to obtain prices for supplying your new premises. They will require information on the new site, the date you take occupancy and the opening meter readings. They may also require sight of the lease. Make sure you compare any prices you are offered with general market rates provided by other suppliers. The EAG can arrange for a whole-of-market comparison on your behalf to find the best deal.
When connecting electricity or gas, you will find it is generally straightforward but the process of comparing energy quotes can be time consuming and complex. We realise you will have many things to consider when moving into new premises and getting help and advice on energy related matters can save you time and money.
The EAG are well positioned to get all your services installed with minimum fuss and provide you with the best market rates for your utility contracts.
Do you need a New Electric Connection or New Gas Supply? We can take care of all your Utilities Connections.