Wholesale Prices rocket again

Oil is up by 1.57% this morning, along with Gas Front Month offers up 3.019% this morning also.

Electricity Front Month offers closed yesterday at 54.57 £/MWh – its highest level since 06/12/2013.

We have already received notification of 2 supplier pricebooks being withdrawn today so please be aware that other suppliers may follow although we have received no definitive confirmation.

 

New Electricity and Gas Price Graph

In addition to the existing graphs of wholesale power (http://www.energybrokers.co.uk/electricity/historic-price-data-graph.htm) and wholesale gas (http://www.energybrokers.co.uk/gas/historic-price-data-graph.htm) we have now launched a price comparison graph, showing both electricity and gas prices in pence per kWh (units), as they appear on domestic and commercial energy bills.  This can be found at http://www.energybrokers.co.uk/electricity/historical-electricity-and-gas-graph.htm

 

Energy Portal is Live

After many months of development, our new client procurement portal is live.

The portal allows you to see full details of all supplies, half hourly, non half hourly and gas for all locations.  You can drill down to see current and previous contract details, including consumption data, or you can look at the overview for all sites and measure annual spend by utility quickly and easily.

Change of tenancy can be managed with a single click.

When tendering for new suppliers, all prices and suppliers are fully visible online.  You can see how has bid for your business, whether they have rebid and we ensure that all charges, including any pass-through costs are fully covered.  This ensure that you have complete transparency on all bids and contracts.

We also offer you a forecasting page for gas and electricity contracts. The main areas of functionality for the Forecasting Page are as follows:

The main areas of functionality for the Forecasting Page are as follows:

• Accurately forecast future energy costs over a three year period.
• An interactive chart to show how future energy costs have changed over a 1 month period based on wholesale market movements.
• A chart to show how non-energy charges have increased from 2012.
• A pie chart to show the cost build up of energy and a breakdown of the different cost elements.
• Instant pricing tool to show how forecast costs compare against current and budget costs.
• A budget page to allow budgets and tripwires to be set against forecast costs.
• A breakdown of forecast costs on a site by site basis.

If your broker isn’t offering all this and more, perhaps it time for you to get in touch.

How de-aggregating gas meters will increase costs

What’s an aggregated gas supply?

Aggregated gas supplies are created when two or more meter points are joined
together to form one supply point, and are billed and priced together. In the past aggregation was generally allowed when meter points were used by the same person or business for the same purpose, and they were close together.

What’s changed?

In 2013 Ofgem, the energy industry regulator, announced that the rules on
aggregated gas supplies were changing. From April 2014, no new aggregations
could be created and by 01 July 2015, all existing aggregations will need to be
split into single supply points. This process is known as de-aggregation.
It is a mandatory change that will impact all energy suppliers and all customers with an aggregated supply. This change is referred to in the industry as Modification 428.

Why is the change needed?

Some customers with aggregated supplies get reduced transportation charges as the more gas that’s used by a supply point, the cheaper the transportation charges tend to be per kWh. The industry believe this should lead to more cost-reflective transportation charges for all meter points and therefore for all customers.

What does this mean for my gas accounts?

Higher costs, more paperwork as each supply will know be billed separately and more complications in the contract negotiation and management.  This will also increase the likelihood of billing errors occurring.

Transportation charges typically represent around 16% of the overall bill, so they can be significant – especially when considered along with the volume discounts which will also be lost. We have seen examples where de-aggregation will increase costs by £15,000 annually for a single site.

There are no public figures for the number of sites involved, but 1 of the Big Six suppliers has confirmed to us that they have over almost 2,000 sites to de-aggregate so the potential impact is very significant.

If you’re worried about how this will affect you please get in touch.

Posted in Gas