Chamber Utilities

Electricity Market Reform - how to reduce added burden

Since the publication of the Government's Electricity Market Reform White Paper, Chamber Utilities™, a free energy service for chamber members, has received many calls from worried customers wanting to know what the repercussions will be on energy costs.

Gary Collins, National Procurement Manager for Chamber Utilities™ said: "Whilst Chamber Utilities™ welcomes the Government's commitment to provide the funds needed to move towards low carbon energy generation, we are also concerned about the burden the reform will have on Chamber members."

Businesses' biggest concern is the suggestion that energy bills need to increase by around 30 per cent by 2030. Whilst the Government states that this is less than the +40 per cent increase that would occur if nothing was done, businesses are already paying very high energy prices, and the new measures will only increase these further.

The Chamber Utilities™ team is reassuring customers that there are measures that can be taken to minimise the impact. Earlier this year Chamber Utilities™ re-launched with a new range of products and services that can play a vital role in helping reduce energy overheads. As Gary explains, "Businesses should make sure they shop around before they renew their energy contracts to get the best deal for their business. In addition they should be looking at ways to reduce their energy consumption: the less energy they use the lower their bills." Chamber Utilities™ calls this the 'Five smart steps of energy management'. These include:

Step one: REGISTER

"Many businesses fail to meet the deadline for serving notice on their energy contract", explains Gary Collins. "Organisations can easily find themselves locked into over-inflated 'out-of-contract' tariffs for as long as 12 months, paying up to 50% more than current rates. This can be a very expensive, yet preventable mistake". Using the new Chamber Utilities™ Renewal Reminder Service, Chamber members will automatically be notified in advance of their contract renewal deadline, providing ample time to research the market and find the most competitive new contract.

Step two: PURCHASE

The wholesale energy marketplace is very volatile and energy prices constantly rise and fall. This presents opportunities to buy when prices dip, but equally a substantial risk of paying a premium during a peak, if purchasing is left until the last minute.

"A new energy contract can be secured well before termination of the current one. Speak to Chamber Utilities™, as an independent energy broker we can start to monitor the wholesale marketplace now and look for opportunities to lock into price dips," says Gary.

Step three: MONITOR

Utility bills are complex and many organisations do not have the time or the knowledge to check them and identify inaccuracies. Gary explains: "Our invoice validation team can check your bills for incorrect charges, ensuring you only pay for what you use. We also resolve any issues and can even check out historical bills and claim back any overcharges!"

Step four: CONTROL

Knowing how you use your energy is key to saving it. Smart Meters provide frequent and accurate energy consumption data. This can then be analysed using automatic monitoring and targeting software packages to help you find ways to improve efficiency and reduce costs.

Step five: SAVE

"All organisations should have an energy and carbon strategy. This should focus on how your business is going to reduce CO2 emissions and improve energy efficiency in the short, medium and long term. If you don't have the skills or expertise internally, consider speaking to Chamber Utilities™, says Gary. "Our experienced consultants can help. "

There is no escaping the fact that energy costs are going to rise as the UK moves towards a low carbon economy. Chamber members therefore need to understand that energy is a growing financial and reputational risk to their business. Yet with some simple planning and strategic focus, energy management could prove to give a fiscal, commercial and operational advantage over competitors.

For further advice on the issues discussed above, please contact Chamber Utilities™ on 0844 225 1650, enquiries@chamberutilities.co.uk, or visit www.chamberutilities.co.uk