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Working together-what-you-need-to-know-about-collective-energy-buying june-2015

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Collective Energy Buying

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Working together-what-you-need-to-know-about-collective-energy-buying june-2015

  1. 1. Working Together: What You Need to Know About Collective Energy Buying www.energyteam.co.uk
  2. 2. Working Together: What You Need to Know About Collective Energy Buying Discover how businesses can save money and reduce risk with collective energy buying. www.energyteam.co.uk
  3. 3. Energy costs are on the rise Energy costs are rising year-on-year due to government policies and the rising cost of wholesale energy. According to DECC, over the five years from 2006 to 2011, in cash terms, wholesale gas prices increased by 17% and electricity prices by 26% £
  4. 4. Energy costs are on the rise Energy costs are rising year-on-year due to government policies and the rising cost of wholesale energy. According to DECC, over the five years from 2006 to 2011, in cash terms, wholesale gas prices increased by 17% and electricity prices by 26% This is why businesses need to harness their collective purchasing power and find a better deal on their energy. £
  5. 5. Combining the energy consumption of multiple businesses has many benefits:
  6. 6. Combining the energy consumption of multiple businesses has many benefits: Increased purchasing power.
  7. 7. Combining the energy consumption of multiple businesses has many benefits: Increased purchasing power. Better opportunities to get the best rates.
  8. 8. Combining the energy consumption of multiple businesses has many benefits: Increased purchasing power. Better opportunities to get the best rates. Access to flexible contracts that are usually only available to larger businesses.
  9. 9. Combining the energy consumption of multiple businesses has many benefits: Increased purchasing power. Better opportunities to get the best rates. Access to flexible contracts that are usually only available to larger businesses. Reduced supplier risk premiums.
  10. 10. Fixed price contracts aren’t best value Traditional fixed price contracts offer the expectation of budget certainty. However, they can be poor value for money as they only represent market prices at a single point in time and will include a risk premium.
  11. 11. Collective purchasing means:
  12. 12. Collective purchasing means: Combining your consumption with similar businesses.
  13. 13. Collective purchasing means: Combining your consumption with similar businesses. Purchasing ‘little and often’ for lower risk premiums.
  14. 14. Collective purchasing means: Combining your consumption with similar businesses. Purchasing ‘little and often’ for lower risk premiums. Taking advantage of market price drops to help avoid high prices.
  15. 15. Collective energy buying must be implemented by a central decision-making body. Members of the purchasing collective will appoint this body. Ideally this should be a specialist who understands the market and continually manages purchasing requirements.
  16. 16. Spread the purchasing risk The wholesale market is extremely volatile, so when it comes to purchasing energy, the key to managing risk and obtaining good value is flexibility.
  17. 17. Flexible purchasing means energy can be bought when market conditions are more favourable.
  18. 18. Flexible purchasing means energy can be bought when market conditions are more favourable. Purchasing is closely monitored by the provider’s analysts and aligned with a detailed risk management strategy.
  19. 19. Flexible purchasing means energy can be bought when market conditions are more favourable. Purchasing is closely monitored by the provider’s analysts and aligned with a detailed risk management strategy. This supports decision-making and sets pre-defined risk limits.
  20. 20. Take action! Collective energy buying doesn’t have to be hard work - Energy brokers or trade associations may already have organised a scheme you can join.
  21. 21. Take action! Everyone’s in on it - The government is urging consumers to look into collective energy buying too.
  22. 22. Take action! If you have always opted for a fixed contract and procured your own energy, collective purchasing is an alternative you should be considering.

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