As a next generation energy company, our approach to helping businesses find the right electricity product is to work with you to understand your overall energy strategy. We provide the right supply contract that enables you to achieve your energy goals.
We’ve identified three key decisions for you to consider, so we can offer the right products and services you need to achieve your energy strategy and become a smarter energy consumer.
1. How is your business transitioning to net-zero carbon?.
The UK was the first nation to make a legal commitment to achieving net zero carbon by 2050. By demonstrating sustainability or using energy more flexibility, large businesses play a key role in accelerating this transition to net zero carbon.
We understand that some businesses will be more engaged in renewables than others. Your energy strategy may be defined by tough financial targets or you may have a Corporate Social Responsibility (CSR) strategy that sits high on the agenda.
Either way, you can be part of the transition to a smarter energy future. Whether you choose 100% renewable electricity, or you provide flexibility to support the grid in balancing a more distributed energy system, we can help your business find commercial value whatever your approach.
a) Sourcing 100% renewable electricity
Our Carbon Trust certified 100% renewable electricity products will enable you to confidently report zero-carbon emissions as every MWh you use comes from renewable sources backed with UK-recognised origin certificates.
We can also work with you to accommodate an existing Power Purchase Agreement (PPA) or explore Corporate PPA opportunities by facilitating a partnership between your business and an independent generation project.
b) Monetising your flexibility
We connect businesses with flexibility to new revenue streams. You might have some flexibility in your demand or a back-up generator or a battery installed onsite to shift your load.
With our Managed Flexibility service, you could optimise this flexibility in the short-term energy markets and other balancing services for maximum value.
2. How do you set your commodity price?
Commodity cost is defined by the wholesale market and as the UK energy system is becoming more dynamic we’ve seen increased price volatility over the last couple of years.
The way you approach procurement of the electricity commodity will depend on your business risk appetite and how often you want to interact with the wholesale market.
If you are looking for upfront clarity, you may look to set your price at the start of your contract at a fixed rate.
For businesses that need more market-reflective prices, we provide flexible purchasing options so you can make decisions based on market conditions and spread the risk of price taking across multiple points, or even an index.
Whether you make these pricing decisions internally or work with an external partner to hedge on your behalf, we have fixed and flexible contract options to suit your business type and purchasing approach, even if you are responsible for buying energy for more than one organisation.
3. What’s your approach to manage non-commodity costs?
Non-commodity costs make up a large proportion of a typical business energy bill, these costs fall into three categories:
Over the last decade, renewables have been heavily supported by government subsidy schemes, such as the Renewable Obligation (RO), Feed-in Tariff (FiT) and Contracts for Difference (CFD) schemes.
Although the RO and FiT scheme have now closed, the costs associated with those generation projects still appear on consumer bills. These costs are generally impacted by inflation, load factors and national demand.
Depending on your business risk appetite, you might want to fix these renewable subsidy costs or pass-through with a reconciliation.
Use of system costs:
The costs to use the energy system, including; TNUoS - the cost for using the transmission network; DUoS - for using your local distribution network; and BSUoS –for the grid to balance demand and supply at all times.
With increased intermittency on the grid these balancing costs are becoming even more unpredictable. Many businesses benefit from managing their business operations around peak times to see savings on these costs.
To benefit from triad management, respond to system stress events, load balancing or peak shaving, you would need these costs to be passed-through.
Taxes and other support levies:
The Climate Change Levy (CCL), Capacity Market, VAT and any other taxes or third-party costs. These costs apply to all customers and are added to all invoices.
If you plan to shift your consumption out of the Capacity Market applicable hours, ensure that you pass-through these costs for maximum savings.
You can find out more about non-commodity costs by registering for our quarterly webinars where our pricing experts provide their forecast pricing and analysis to inform your business energy strategy.
Get in touch:
To discuss your energy purchasing requirements with one of our Business Development Managers, please complete this short form and we’ll get back to you as soon as possible.