Utility Broker | Gerard Duggan

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.

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.

Measure your usage – sounds boring but could save many £££

Peter Drucker said: “If you can’t measure it, you can’t manage it.” But it’s a bit boring watching your electricity meter slowly turning. So why not install a digital electricity usage meter that displays to the nearest watt how much energy your firm is consuming? Meters aren’t expensive. You can pick up a Current Cost Envi digital display (made by British entrepreneur Martin Dix) for under £40 on eBay. Installation is non-technical and takes 30 seconds. If you input your price per kilowatt hour, it will translate the energy statistics into pound signs. The display is wireless, so you can keep it on your desk. You’ll be surprised what an impact the installation of such a device will have on consumption.

Have you heard the story of the happy White Horse?

“Gerard at Utilitrack helped us renew our gas contract in January 2010; at the time our supply was with Shell Gas. Utilitrack made sure our cancellation notice was served to our current supplier to ensure we weren’t rolled into a new contract or went into expensive out of contract rates. Gerard’s team tendered our contract to the open market and they had six responses including a renewal rate from our current supplier. Shell offered a better rate than we were currently paying, some 15% but British Gas more than doubled this which means we have over £1800 extra in our account.

Utilitrack were able to achieve this without any impact on our day to day business; two short meetings with Gerard, one to gather a copy of our bills and one to sign off the contract was all it took. I’d recommend you speak to Utilitrack to see what they can save you. We look forward to Gerard helping us renew our future energy contracts.”

The White Horse Pub Newnam Ave Bedford

Shop Around

If you’ve been with your utility company for more than two years, chances are you’re paying too much. For gas, electricity and water, it’s imperative to search the market annually for the best deal. With 11,000 different tariffs and tricky termination rules, this could be a chore, so use a utility broker who can connect you with the whole of the market. Beware of those who represent one or two utility companies they may not offer the best value or best savings.

Treatment of SMEs “beyond belief”

Britain’s big energy companies are forcing as many as 250,000 small businesses to pay for their energy up to seven months in advance, it has emerged.

Alistair Buchanan, chief executive of Ofgem, the energy regulator, called the companies including Scottish Power, British Gas, EDF Energy, E.ON, RWE Npower and SSE to a meeting in London recently to express mounting concern about the practice, which it is feared could put companies into real difficulty.

Stephen Alambritis, at the Federation of Small Businesses, estimates that about one million of Britain’s 4.7 million small and medium-sized businesses have been contacted by their energy companies in recent months and informed of tougher payment conditions in a move designed to help to shield suppliers from the impact of the growing number of companies entering insolvency.

About a quarter of those some 250,000 small businesses employing 2.5 million people, have been asked to pay an element of their bills upfront, Mr Alambritis added.

Scottish Power, E.ON and British Gas are among those to have tightened their credit conditions recently.

Nick Campbell, an energy trader at Inenco, the consultancy, estimates that UK companies are now being forced to pay up to £350 million in advance for their energy. He said that suppliers appeared to be targeting businesses by sector and that industries heavily exposed to the downturn such as manufacturing, car-making, construction and retail were particularly hard hit.

“There is less risk appetite where these businesses are concerned,” said Mr Campbell. “The vast majority of businesses in these sectors could expect to be hit by these restrictions.”

About 40,000 UK companies are expected to enter insolvency during 2009, a 62 per cent increase on 2007.

Jeremy Nicholson, director of the Energy Intensive Users Group, the lobbying organisation, said some companies in the ceramics industry had been asked to pay seven months’ worth of their energy bills upfront a trend that he described as “beyond belief” in the current environment.

The problem has intensified because credit insurers, which pay the bills of companies that are insolvent, have withdrawn from certain industries amid a surge in business failures.

David Cockshott, head of corporate sales at Npower, said that as many as 60 per cent of new customer applications were now being rejected by trade credit insurers, up from 5 per cent two years ago.

The lack of cover has prompted energy companies both to demand deposits and to seek payment of invoices in as little as five days or customers face having their supplies cut.

Mr Alambritis said he was “very concerned”. “The energy companies have started using some very aggressive tactics. They have been concerned by the high level of bankruptcies. But asking for money upfront puts businesses in an even more precarious situation.”

Heavenly Link for Gerard…

Yesterday I had a great start to the day and was appointed by Woodside Church to review their gas and electricity spend. I look forward to reporting back to their management team once I’ve established when their contract expires. In the meantime let me let you a little about this contemporary, Bible-believing Christian church based in Bedford.

It is a large family of people of all ages, united by a love of God and are passionate about living their lives in a way that makes a difference to the people around them. The church is a community of people drawn from many different social and ethnic backgrounds, just like Bedford itself.

Woodside meet together on Sundays at 10.30am in a modern building located in the heart of the Putnoe area of Bedford. They also gather throughout the week in smaller groups meeting in homes across the town. Woodside run weekly programmes for children, young people, parents with small children and those seeking special personal help.

Everyone is welcome to be a part of the life of our church, wherever you’re from, whatever your age and whatever your background.

Woodside Church belongs to the Newfrontiers family of churches.