Business energy for a number of small sites.
Discussion
Our Eon contract is up imminently and we are taking three quotes. Eon again, EDF and one other.
Is anyone aware of any of the bigger players buying business at the moment?
It's for about 30 sites using circa £4kpa in gas and electricity each.
Note: We've always stuck with EON because they are local and pleasant to deal with, but in the past 2 years they have become a bit less good in all areas.
With 30 sites, this is right up our street.
You are opening yourself up to massive risk having them all with the same contract end date and there are plenty of other factors to consider. e.g. different suppliers are competitive in different regions due to the legacy infrastructure and transportation differences for example. Are all the properties in the same energy region?
Can we talk on Monday? Please pm me your details.
You are opening yourself up to massive risk having them all with the same contract end date and there are plenty of other factors to consider. e.g. different suppliers are competitive in different regions due to the legacy infrastructure and transportation differences for example. Are all the properties in the same energy region?
Can we talk on Monday? Please pm me your details.
Mr Overheads said:
With 30 sites, this is right up our street.
You are opening yourself up to massive risk having them all with the same contract end date and there are plenty of other factors to consider. e.g. different suppliers are competitive in different regions due to the legacy infrastructure and transportation differences for example. Are all the properties in the same energy region?
Can we talk on Monday? Please pm me your details.
Why do you say that having the same contract end date is risky? Do you mean that we end up coming to market with all sites when rates may have risen? There is also the consideration that we don't want to regularly be revisiting the moving of energy contracts.You are opening yourself up to massive risk having them all with the same contract end date and there are plenty of other factors to consider. e.g. different suppliers are competitive in different regions due to the legacy infrastructure and transportation differences for example. Are all the properties in the same energy region?
Can we talk on Monday? Please pm me your details.
All the properties are in the same Mpan area.
Sorry been way for the weekend.
If I could post some graphs here I would.
If you look back at 2008. Prices rocketed in the space of a few months. Many companies locked in everything for 3 years, but then it plummeted just as rapidly and versus their competitors they were then at a serious disadvantage with an energy bill almost double. If you/they are in a privileged position to be able to spread that risk then you should do. Presuming all the site use the same or similar kWh you could do 10 on 1 year, 10 on 2 year and 10 on 3 year contracts for example.
There is also supplier risk. If one supplier decides to play games over a billing error on 1 meter, you might be stuck on out of contract rates on all the supplies at the end of the contract if not managed correctly. If the supplier goes bust, which has happened, you then have to act quickly and other suppliers might take advantage on price and/or timing might be dire market price wise., so again if you don't have all the supplies with one supplier you spread that risk.
If the suppliers website is hacked/smart meters are hacked etc, again you are splitting the risk.
Then there are Semi Fixed and Fully fixed contracts, you could split the contract type too, but that would depend on the offers received.
Finally why limit yourself to such a small range of suppliers for quotes? There are many suppliers, but also you can find 100% renewable energy supplies which depending on your market could be a good pr/marketing/CSR benefit and you don't have to pay more for that.
If I could post some graphs here I would.
If you look back at 2008. Prices rocketed in the space of a few months. Many companies locked in everything for 3 years, but then it plummeted just as rapidly and versus their competitors they were then at a serious disadvantage with an energy bill almost double. If you/they are in a privileged position to be able to spread that risk then you should do. Presuming all the site use the same or similar kWh you could do 10 on 1 year, 10 on 2 year and 10 on 3 year contracts for example.
There is also supplier risk. If one supplier decides to play games over a billing error on 1 meter, you might be stuck on out of contract rates on all the supplies at the end of the contract if not managed correctly. If the supplier goes bust, which has happened, you then have to act quickly and other suppliers might take advantage on price and/or timing might be dire market price wise., so again if you don't have all the supplies with one supplier you spread that risk.
If the suppliers website is hacked/smart meters are hacked etc, again you are splitting the risk.
Then there are Semi Fixed and Fully fixed contracts, you could split the contract type too, but that would depend on the offers received.
Finally why limit yourself to such a small range of suppliers for quotes? There are many suppliers, but also you can find 100% renewable energy supplies which depending on your market could be a good pr/marketing/CSR benefit and you don't have to pay more for that.
Mr Overheads said:
Sorry been way for the weekend.
If I could post some graphs here I would.
If you look back at 2008. Prices rocketed in the space of a few months. Many companies locked in everything for 3 years, but then it plummeted just as rapidly and versus their competitors they were then at a serious disadvantage with an energy bill almost double. If you/they are in a privileged position to be able to spread that risk then you should do. Presuming all the site use the same or similar kWh you could do 10 on 1 year, 10 on 2 year and 10 on 3 year contracts for example.
There is also supplier risk. If one supplier decides to play games over a billing error on 1 meter, you might be stuck on out of contract rates on all the supplies at the end of the contract if not managed correctly. If the supplier goes bust, which has happened, you then have to act quickly and other suppliers might take advantage on price and/or timing might be dire market price wise., so again if you don't have all the supplies with one supplier you spread that risk.
If the suppliers website is hacked/smart meters are hacked etc, again you are splitting the risk.
Then there are Semi Fixed and Fully fixed contracts, you could split the contract type too, but that would depend on the offers received.
Finally why limit yourself to such a small range of suppliers for quotes? There are many suppliers, but also you can find 100% renewable energy supplies which depending on your market could be a good pr/marketing/CSR benefit and you don't have to pay more for that.
Great, thanks for posting back.If I could post some graphs here I would.
If you look back at 2008. Prices rocketed in the space of a few months. Many companies locked in everything for 3 years, but then it plummeted just as rapidly and versus their competitors they were then at a serious disadvantage with an energy bill almost double. If you/they are in a privileged position to be able to spread that risk then you should do. Presuming all the site use the same or similar kWh you could do 10 on 1 year, 10 on 2 year and 10 on 3 year contracts for example.
There is also supplier risk. If one supplier decides to play games over a billing error on 1 meter, you might be stuck on out of contract rates on all the supplies at the end of the contract if not managed correctly. If the supplier goes bust, which has happened, you then have to act quickly and other suppliers might take advantage on price and/or timing might be dire market price wise., so again if you don't have all the supplies with one supplier you spread that risk.
If the suppliers website is hacked/smart meters are hacked etc, again you are splitting the risk.
Then there are Semi Fixed and Fully fixed contracts, you could split the contract type too, but that would depend on the offers received.
Finally why limit yourself to such a small range of suppliers for quotes? There are many suppliers, but also you can find 100% renewable energy supplies which depending on your market could be a good pr/marketing/CSR benefit and you don't have to pay more for that.
We are currently talking to EDF and Eon. Possibly both. Correct me if I am wrong, but I don't think either is likely to go bust.
Convenience is a part of it and we don't have the time or inclination to spend a lot of time managing energy accounts.
We'll do the management and admin for you! And we'll use the quotes you're getting now as the benchmark so you won't pay more than that (subject to market movements of course) I would hope to get it much cheaper.
Edit: Forgot to add, how much is "Convenience is a part of it and we don't have the time or inclination to spend a lot of time managing energy accounts." costing you, if it's £50 per site per year, then I agree keep it simple. But if it's £1000 per site per year, that's £90k you're throwing away on a 3 year contract (I doubt it's that much or that little but I tend to find extreme's concentrate the mind).
Edit: Forgot to add, how much is "Convenience is a part of it and we don't have the time or inclination to spend a lot of time managing energy accounts." costing you, if it's £50 per site per year, then I agree keep it simple. But if it's £1000 per site per year, that's £90k you're throwing away on a 3 year contract (I doubt it's that much or that little but I tend to find extreme's concentrate the mind).
Edited by Mr Overheads on Monday 10th September 22:10
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