Industry News
See below for some information and insights on the UK Utilities industry that you might find interesting...
We were recently asked this question by a client: If we wish to improve the efficiency of the energy usage in our building, what should we prioritise?
Top priority is always to make sure you are as insulated as possible – it’s no good heating a building if that heat is just going to escape through the roof, walls, windows, and doors. So, get that ladder out and check the insulation in your loft. Get quotes for double or triple glazing those old windows and doors and consider putting thermal plasterboards on the inside of exterior walls next time you decorate.
Once you are fully insulated then look at generating your own electricity – use that roof space for some solar panels or put up a wind turbine – there are “no upfront cost options” available, and these solutions are not as expensive as you think and will pay back with energy cost savings.
If you have an old boiler look at replacing it with a more efficient, modern and hydrogen ready boiler. Again, there are some upfront costs, but the energy savings should see a fairly short pay-back period.
Finally, have a look at some heat pump options – generally, air source for existing buildings and ground source for new builds. Heat pumps shouldn’t really be considered until you have done all you can to insulate your building and have a super good EPC (Energy Performance Certificate) rating.
We hope that is helpful. If you have any questions please contact us on help@andysawers.com and we will put you in touch with one of our experts.
The Current Energy Crisis and what you should do?
You will have read a lot in the media about the current energy crisis, which is caused by the basic economic effects of supply and demand!
The crisis is: the wholesale price of energy (gas and electricity) has risen exponentially in the last 12 months to extraordinary levels as demand has outstripped supply.
As a result, many companies, mainly in the residential sector, who have been buying in business by offering hugely attractive rates, now find this model impossible to maintain. They have not been “hedging” their own purchase costs (getting fixed price contracts for themselves), which now means that many of them are now buying energy at a much higher price and are reselling it to their customers at the contract price, meaning that they are losing money every time one of their customers use energy.
Clearly this is unsustainable.
So, what are the energy companies doing:
1. They can go out of business – 5 companies in the residential market have gone out of business over the last three weeks or so and rumours suggest that others will follow shortly.
2. They can cancel your fixed price contract – most “fixed price” contracts have a clause in them saying that the supplier reserves the right to cancel fixed term contracts in exceptional circumstances: we have heard of a company in the business sector that has done this today for several their customers.
3. They can do nothing and hope for the best.
As a consumer what should you do if any of the above happen:
• If you are a business, then contact your energy consultant and get them to help you with the issue.
• If you are a residential consumer then you are largely on your own, although OFGEM has a safety net in place to ensure that you are not left without energy. But you are not without hope – see the advice below.
If your current supplier of residential energy goes out of business, then OFGEM will arrange for a new supplier to bill you for your energy. This will not be at your current contract price, but will be subject to the “Price Cap”, which has recently increased.
You have no choice but to allow this to happen. However, once the new supplier has taken over you are then able to change suppliers. However, most energy companies are not offering fixed rates now and comparison sites have not been able to offer new rates either, so you must do the legwork yourself.
By packaging up your utilities, there are “meal deals” available out there which can give you a cracking energy deal.
If you have any questions about this article or would like some guidance please do contact us, without obligation at AndySawers.com either by phone (0800 298 7686), email (help@andysawers.com) or via the contact form below.
5 Top Tips to Future Proof your Business as you go into the Post Lockdown Economic Recovery
1. How Green is Your Business?
Arrange to have your carbon footprint measured and certified. Big businesses (turnover greater than £36M per annum) have to do this now and will be asking their suppliers to identify their carbon footprint and explain what they are doing towards moving it to Net Zero Emissions. In time all businesses will need to do this.
2. Switch to a Green Energy Tariff
A couple of years ago the options were “go green or save money”. Now it is largely “go green and save money”. There are lots of great tariffs out there. Ask your broker to get some quotes when you are ready to renew your energy contract.
3. Reduce your energy consumption
Get an energy consultant to look at your business operations and premises, and see what areas would achieve the greatest energy savings – simple things like converting your light fittings to LED bulbs can have an enormous impact. But it is always worth looking at your processes and see if these could improve the way you use energy.
4. Consider generating your own energy
Solar power, wind turbines and heat pumps don’t have to cost the earth (they will actually help you save the earth!), and if your business owns roof space or land, then this can become a very economical alternative.
5. Migrate your fleet of cars and vans across to Electric Vehicles (EVs) or Hybrids as they are renewed
This market is really developing and the technology improving almost daily. By 2030 all new cars and vans in the UK will be electric, and that is only 9 years away! Speak to an electric vehicle specialist to see how this might work for your business.
If you want to know more about any of these areas, our team at AndySawers.com are ready to talk to you to see how you can benefit, with any obligation or upfront costs. Contact us at help@andysawers.com or call 0800 298 7686 or 01452 855 657.
Future Net Zero
We posted on our LinkedIn recently about our excitement over Future Net Zero (FNZ). But what is FNZ?
In short, it is helping businesses to reduce or eliminate their Carbon Footprint to contribute towards the global targets set by the "Paris Agreement". Fuller details are set out in the attached document.
More and more larger businesses are insisting that their supply chain demonstrate how they are reducing their carbon footprint as part of their tendering or supply agreement terms. In time, this will come further down the food chain and all businesses will be expected to demonstrate what they have done and are planning to do.
Can your business demonstrate this and can they provide independent certification of this?
We can work with companies to identify where they can reduce their carbon footprint, help them achieve that and get it certified so they can demonstrate clearly to their customers what they are doing.
Multi-site Businesses
So how do you manage energy costs when you run a business which has various outlets each managed on a day-to-day basis by different individuals?
Maybe you are a Regional Manager for a group of pubs, restaurants, or retail outlets and in the current economic squeeze you are looking for ways to reduce your overheads.
It is a tricky one without going around each outlet looking to see what settings are in place for heating/ air conditioning systems, refrigeration units or where else energy is being wasted.
Often multi-site businesses will have similar set-ups and so energy usage should be similar. So, wouldn’t it be great to be able to see in real time what usage each outlet had and then you could identify which units were being efficient and which were being wasteful. Then you can visit the appropriate sites and see what they are doing right and how they can improve their processes.
Thankfully, those clever people at Full Power Utilities have developed an online Portal which does just that for you!
If you want to know more, please do watch the video or get in touch with us at help@andysawers.com.
Some of our greatest buildings have been repurposed into Care Homes, Pubs, Restaurants, Hotels, Factories or Offices.
They’re amazing places to work but they present a problem for Facilities Managers who have an extremely important role to play in looking after some of our great buildings around the UK – wherever they are.
The very nature of their role means that they are constantly tackling problems to ensure the safety of their colleagues and clients, and maintaining the upkeep of their properties. The increasing amount of Health & Safety and COVID-19 policies brings with it an enormous extra burden of paperwork. All of this before they even get a chance to deal with that upcoming energy contract renewal.
The thought of phoning around a few energy companies, getting held up in phone queues and ending up with a myriad of confusing quotes is, to say the least, unappealing and ends up way down the “to-do” list.
This is where a good quality energy broker comes in hand.
When choosing an energy broker, they should be classed as a Premier Energy Broker and able to deal with the whole of the UK’s 50+ energy companies. Their offering should be much more than just getting quotes for a new energy contract – they should be checking VAT rates, are the current energy contract terms reflected in the billing, are bills worked on estimated readings, is the energy contract deriving power from renewable resources, and so the list goes on.
#Energy #FacilitiesManagement
The news seems to be dominated (and quite correctly) by one item at the moment. However there is also interesting developments in the oil/energy markets, with tension between the Saudi and Russia governments culminating in the world oil market being over-supplied and prices slumping as a result - you may have noticed this at the petrol pumps of late.
This is also having a knock-on effect in the energy market with prices currently running at a three year low.
If your current energy contracts are due to expire in the next 24 months, then we can look at getting a "follow on" contract sorted for you now at today's prices, for you to benefit from when your current contract ends.
If you would like to know more, without obligation or cost, do please email help@andysawers.com or call 0800 298 7686.
Gas and Electricity supply for residents who are vulnerable or self-isolating (especially re: access to communal meters) take note:
"For customers who have a prepay meter, if you contact your supplier and tell them you're self-isolating, they will send you out 2 weeks' worth of gas/electricity, or if you have a smart meter, they will top you up."
BRITISH GAS: 0333 202 9802
EDF: 0333 200 5100
EON: 0345 052 000
N POWER: 0800 073 3000
SCOTTISH POWER: 08000 270 072
SSE: 0345 026 2658
#electricity #energy #gas #hmo #landlords #pin
New Year, HUGE Opportunity...
Wholesale Gas prices are the lowest we have seen for almost 3 years, meaning there is a HUGE opportunity for you to secure a great deal NOW.
We can generally quote for renewals up to 2 years in advance of your current contract ending. ZERO cost, ZERO obligation.
If you would like us to look at your requirements please contact us via help@andysawers.com or 0800 298 7686.
Gas storage throughout Europe has been incredibly high over the last few months. The diagram demonstrates the storage levels.
The knock-on effect was that the UK had a huge supply of gas, which is part of the reason why prices have been low.
To discuss the review of your gas contracts so you can benefit from this, please contact help@andysawers.com.
With news in November of another two energy suppliers (‘Extra Energy’ and Spark Energy Supply’) ceasing trading, and with many suppliers also increasing their prices significantly, it has certainly become a confusing time for business owners to know from whom they should be buying their gas and electricity.
For most, price is the main driver of any decision. Especially when large consumers could be allocating £10,000’s of their quarterly budget to the cost. However, with seven suppliers now having ceased trading in 2018 alone, it pays to dig a little deeper.
There are over 40 commercial energy suppliers currently in the market, all who have their strengths and their weaknesses. The ‘Big 6’ often rely on their legacy and their name to install confidence in the buyer, but often lack some of the niche assets that smaller suppliers hold and are regularly being beaten on price by newer entrants to the market, who are keen to take market share.
As a commercial user of gas and electricity, it pays significantly to ‘shop around’, but it is an exercise best completed with a certain level of knowledge and understanding. To a certain level, this knowledge can be obtained via a little online research, but as is normally the case, it is wise to use the services of an expert. This is especially the case now, as what you are paying for is not simply the commodity itself.
The price you pay for your gas and (especially) electricity is made up of more and more (and ever complicated) taxes and charges, to help maintain an ageing National Grid that is under more demand than it has ever been. In fact, almost 60% of the price you pay for your supply of electricity are ‘non-commodity’ charges, of which there are over 10 different ones. When going through the procurement process, it is vital to know what these are and to ensure that the contract you are being offered takes all of them into consideration. Otherwise you might just get a nasty surprise when you receive your first invoice.
Of course, price (and knowing how it is made up) is not the only consideration you should have. A cheap rate usually reflects upon the supplier’s level of resources (i.e. its level of customer service). Using a well-established broker or consultant removes this concern, but if you are going through the procurement process alone, then be sure to check the supplier’s ability to deal with your queries effectively… and their ability to remain in business!
The importance of having a strategy for procuring your gas and electricity – especially if you’re a pub landlord…
Amongst the many costs of running a business, the cost of gas and electricity is one that is largely ignored. Very few businesses are in a position to allocate the required amount of time to navigate the whole market and obtain comparative quotes from all the suppliers out there (and there are over 30 these days). The truth is, most business owners – and especially those in hospitality – simply don’t have the time.
Even if they did have the time, would they know what they are looking for and how to avoid hidden charges?
It can also be difficult as a pub landlord to secure good credit terms with the utility suppliers. The hospitality industry is often marked as ‘high risk’, and so many suppliers request a security deposit before agreeing to a supply. These deposits can run into thousands of pounds.
We spoke to Andy Sawers from Cheltenham about this. Andy works alongside Full Power Utilities – a utilities consultancy of over 20 years standing:
"My advice to all business owners, especially pub landlords, is to seek the help of an expert. By using an established consultancy – one that doesn’t charge a consultation fee, such as Full Power Utilities – you will gain access to the most competitive rates on the market and reduce the risk of being charged a hefty security deposit. Not only this, you will have an expert on side to help you, should there be any issues with your supply or bill."
Frequently Asked Questions...
What happens when your energy supplier goes bust?
It's unlikely that your supplier will go out of business, but if it does, the regulator, OFGEM, provides a safety net that will make sure you'll always have an energy supply.
Here are five things to know if you hear that your energy supplier has gone out of business:
1. Will I lose my supply?
No. OFGEM will arrange for you to move to a new supplier and your energy supply won't be disrupted. You probably won’t notice any change until your new supplier contacts you.
2. Can I choose my new supplier?
No. OFGEM will appoint your new supplier, following a "competitive process designed to get the best deal for you". Once you are with your new supplier, that is the time to look around for a fresh deal.
3. Will my bills go up?
Your new supplier will put you on a special "deemed" contract, which means it's a contract you haven't chosen. Your bills may therefore increase, as these contracts can be more expensive, although OFGEM will endeavour to get the best deal for you.
Your new supplier will receive any outstanding credit balance you may have with your current supplier. Once you are with your new supplier, they will contact you to explain how your new account will work.
4. I had made a complaint to my old supplier and I'm still waiting for it to be resolved. What happens now?
If you had made a complaint to your old supplier and it had not yet been resolved, you will need to raise the issue again with the new supplier once OFGEM has chosen them.
The new supplier will review if the complaint is still relevant now that you have transferred to them, or if it can be closed.
5. Can I switch supplier?
OFGEM advises consumers not to switch immediately, and instead to wait until your new supplier has got in touch with you.
Once you've been contacted, ask them to put you on the cheapest deal, or shop around if you aren't happy with them as a supplier.
You won't be charged exit fees.
If you have any questions about the above, please don't hesitate to get in touch by completing the enquiry form below, or calling Andy on 01452 855 657.
About Andy Sawers
Andy Sawers was born and brought-up in Bath and was educated in the traditional sense... get good A levels, a Degree and then a 'Job for Life'.
By the time he got to the A level bit though, his interest in following the normal path of life had left him. He left school aged 18 with a couple of mediocre A levels and went to work for a major high street bank, obtaining a Banking Degree by part-time study.
He did very well: joined the Management Development Programme and rose to being a Senior Manager by his late thirties, but something was still missing, and Andy's entrepreneurial streak was refusing to stay quiet.
Get in touch
If you would like to learn more about our services, or would like to request a free, no-obligation consultation and quotation, please give us a call on 01452 855 657. Alternatively, simply fill in the form below and we'll get back to you within 24 hours.
