Tag: cheaper energy bills

New best tariff ‘guarantee’ by the energy industry

The Government in the shape of Nick Clegg announced a landmark deal with the UK’s big six energy suppliers following talks in which customers will be guaranteed an offer of the best tariff open to them depending on their needs and energy use.

The new best tariff ‘guarantee’ by the energy industry is one aimed at domestic clients’ not commercial ones. So don’t expect the industry to do you any favours in your business…you need to be pro-active or ask for help from a broker.

Commercial contracts are where the industry makes it profit and are less politically sensitive than the domestic market. You and I vote at home …we don’t vote in our businesses. I think that is what our politicians believe!

So next time your renewal rate hits your desk get it checked. All commercial businesses have a contract associated with their gas and electricity meters. Towards the end of the contract the energy supplier will issue a written renewal for the next period of supply. That supply period will be equivalent to the length of contract the customer has been in i.e. if you’ve been in a 12 month deal your renewal will be for another 12 months.

But how good is that renewal rate. By using commercial utility broker Utilitrack the saving you can achieve on a renewal can be significant. A recent example illustrates the point: one of my client’s, a motorcycle parts company, received their renewal from their current supplier; it showed a 34% increase or £835.00. My accounts team investigated the renewal and tested it against the market rate. As a result of our intervention we’ve been able to keep the client with the same supplier with only a minor increase of £58.00…a huge difference in a business with very low margins.

If you’d like me to check your renewal please call me on my direct line 01234-267883.

Have you signed a contract recently with Haven?

Haven has advised their clients of significant increases in third party costs and taxes being passed on to electricity suppliers nationally, which you may have seen in the media. The costs include the government’s Feed In Tariff scheme (FiT) and the Renewables Obligation (RO), together with large increases in transmission & distribution costs.

Haven has indicated these increases are considerably higher than they envisaged. In accordance with their terms and conditions they will be increasing their customers’ electricity prices, with effect from 1st April 2012, to incorporate these extra costs and taxes. Increases will be calculated on a site by site basis and are not a result of changes in wholesale electricity costs which are of course fixed for the duration of the contract their client’s have signed.

Worth noting that the Climate Change Levy (CCL) tax, as specified by HM Revenue and Customs is also increasing from 0.485 to 0.509 pence per unit from the same date.

In previous years Haven has absorbed 100% of these increases however this year the increases are so large and unexpected they feel compelled to pass them on in full. It remains to be seen if Haven’s move is the start of other suppliers notifying their client’s of an unexpected price rise!

If you would like to find out more about third party charges or have any questions regarding this matter please call me on 0845 604 1484.

Shortage of water could spike electricity prices!

It is already one of the driest areas in the UK with rain fall levels equivalent to Tel Aviv but the extra dry conditions of the winter in the east of England could raise electricity prices by 5.7 %. Lots of water is needed to cool power plants and generators in the area are facing higher cost to procure the water needed.

The principle producers in the East of England are Npower and EDF whose two power plants generate 94 percent of electricity in this part of the UK. The extra cost of water is a staggering £53 million.

Ironically the opposite is true in Scotland where SSE’s hydro plant has achieved record production levels.

Difficult to know at this stage how much of this extra cost is going to be absorbed by NPower and EDF and how much is going to be passed onto businesses and domestic consumers. So well worth consulting Utilitrack to take advice well ahead of your contract renewal date to ensure you don’t over pay for your energy costs.

If you are unsure when your contract ends I can help you find out and just as importantly when you need to terminate the contract to ensure you don’t get rolled into a new one at uncompetitive rates.

Please call me on 0845 604 1484

Are you on out of contract rates?

All commercial businesses have a contract associated with their gas and electricity meters. However there are occasions when a business can roll out of contract. In such circumstances their current supplier places them on what are known as ‘deemed rates’ which should really be called uncompetitive rates!

Out of contract rates can be as high as 40% above the going market rate. These rates can be challenged but how would you know if your current supplier doesn’t inform you.

By using a commercial utility broker like Utilitrack we can investigate your current rates and the contract associated with the deal you are currently on. With a very basic brief from you we can check if there is a better rate for your business.

If you are out of contract we can arrange to obtain the best market rate renewal. If you are in contract we won’t attempt to break that deal but will track it to obtain the best renewal rate. A recent example illustrates the point: a firm of solicitors in Hull were unaware they were out of contract until Utilitrack checked. We invited their current supplier to quote a contract rate and in the process they offered prices 40% less than the client was paying. A huge difference! However on further investigation we found the market rate was 7% lower than that price. The client saved nearly £400 on this meter – one of their seven electricity meters. A similar scenario with one of their gas meters saved them over £1200.

If you’d like me to check your rates please call me on my direct line 01234-267883.

How do you pay your energy bills in your business?

With only a few exceptions the UK energy company collects its client’s payments via Direct Debit. Most utility based businesses, energy, telecoms and water all favor this method principally as it facilitates a smooth cash flow and the reduction of processing costs.

Some people are concerned about the apparent access this method of payment gives a supplier to their bank account. However there are very strict regulations governing the conduct of the way these transactions are set up and conducted. The banking community underwrites the entire process with a Direct Debit (D/D) Guarantee Scheme.

There is a distinct advantage for you choosing to have your utility account paid by D/D, that is, much greater choice of suppliers with more competitive pricing! Only a few suppliers allows its client’s to pay by cash or cheque whose cash/cheque rates are more expensive than the equivalent direct debit tariff.

So if you are on a cash/cheque rate for your energy you are missing out on a better deal. If you’d like to discuss this issue or any other relating to your commercial energy contract please do call me on my direct line 01234 267883.

Lower Energy Prices…at home only

The recent announcement by the major energy companies in the UK is great news for home owners. Though most of their customers won’t see the benefit of the lower tariffs until the spring.

Business uses won’t see a reduction though as virtually every commercial business with a metered supply of gas or electricity is in a contract. Your current supplier won’t be breaking the contract to provide you with a lower tariff.

Commercial organisations need to continue to be aware of the terms of their contracts with their current supplier and be mindful of the roll-over trap. I’m still finding examples of businesses that unwittingly have been rolled into a new contract at non-market rates for another twelve or even twenty four months. A client in St Albans who runs a pizza franchise saved 36% on his gas bill when renewing through commercial energy brokers Utilitrack last week. That represented over £1700 of his current spend. I’d say that represents a lot of profit from a lot of pizzas.

If you are a commercial business and need an impartial, independent and trusted broker please Utilitrack on 0845 604 1484.

Happy New Year

What resolutions for 2012 have you added to your things to do list?

Is one of them reviewing your energy costs?

As a business customer, switching energy supplier can make a big difference to your bottom line. In the current climate it is very difficult to increase ones prices to improve profits so best to focus on the costs in your business.

There are many suppliers in the market and it can be difficult to find the time to speak to more than a few of them to get a representative sample to measure the market rate.

Getting the timing right to know when to have those conversation is vital. Most businesses don’t know when their contracts end or when to serve notice so that they can leave their current supplier once it expires.

Understanding your contract is essential to comparison process. Ofgem wants to make sure that businesses understand how to compare deals and how to go about switching. They have produced a guide on their website but so much easier to have someone do the shopping for you!

Find a broker that is independent, transparent and free of charge. They will be able to help you with all the above issues.

Utilitrack is such a broker, we are independent of all suppliers and do not favour one supplier over another; we are transparent as we show our clients the results of our tender process and we are free. We do not take any share of any savings we make for you or charge you for the service. We are recognised by the suppliers who pay an industry standard commission based on usage and not your spend.

If you’d like to be in control of your energy budget please call Gerard Duggan on 0845 604 1484.

Have you reviewed your call charges from your landline recently?

Unlike energy prices, telecoms costs are falling but are you benefiting from the reductions?

Many businesses when comparing offers centre on line rental charges but it is call costs that you should focus on to reduce your bill.

Most businesses are spending far too much money on their calls to mobiles. Calls to this category of phone very often account for more than 50% of a business’s bill.  Speak to your supplier to ensure you get a reduction in this aspect of your bill today.

Don’t be tempted by capped rates! A capped rate allows the caller to speak for a set period of time usually up to an hour for a fixed fee. However capped rates only benefit a minority of businesses as most business calls are below two minutes. Therefore well below the time frame covered by the capping.  Consequently a capped rate call usually means you are paying too much.

It doesn’t take long to complete an analysis of a bill.

Find a telecoms company, preferably a Tier 1 supplier, who can offer a full range of services: broadband, landlines and mobiles. All you should need to provide them with is a copy of your latest telephony fixed line and mobile bills covering broadband usage, line rentals and calls to obtain an analysis.

My business Utilitrack Telecoms will provide a detailed analysis within 48 hours. If you would like to know more please call me on 0845 604 1484 or email Gerard@utilitrackonline.co.uk

It’s Movember the month formerly known as November.

Did you know it is a month now dedicated to the growing of moustaches and raising awareness and funds for men’s health; specifically prostate and testicular cancer. I’m donating my top lip to the cause for the month in an effort to help change the face of men’s health. My Mo will spark conversations cause funny looks, laugher and merriment in the office (especially from H) but all in the name of raising vital awareness and funds for cancers affecting men.

Why am I so passionate about men’s health?

  • My business partners very close friend is very ill with cancer
  • 1 in 9 men will be diagnosed with prostate cancer in their lifetime
  • This year 37,000 new cases of the disease will be diagnosed
  • 1 in 2 men will be diagnosed with cancer in their lifetime
  • 26% of men are less likely to go the doctor compared to women

I’m asking you to support my Movember campaign by making a donation by either:  donating online at: http://mobro.co/GerardDuggan or if you want to go old school you can write a cheque payable to ‘Movember’, reference my name and Registration Number 120059 and send it to: Movember Europe, PO Box 68600, London, EC1P 1EF

 Thanks for reading this note.

Pink Friday at Meades & Co

I look a vision in pink this morning…well I’m wearing a lot of pink today.

Paul Meades of Meades & Co is having a ‘do’ at his offices this afternoon as part of Breast Cancer Awareness month. Looking forward to a glass of pink fizz and I’ve been promised a pink treat for a fiver…is it a bargain or should I be scared. Ah well all in good cause.

Meades & Co are very progressive accountants most definitely not your average bean counter. Paul’s business undertakes a lot of charity fund raising and has a lot of fun in the process.

If you’d like to make a donation call Paul on 01923 800444