It pays to choose your energy supplier and contract very carefully
ENERGY CONTRACTS Ask TED, The Energy Desk's specialist help desk, answers your questions
How do I know if I’m on the right energy contract for my business? There are varying tariffs available depending on how much energy you use and when. For example there are contracts available that split the rates between day and night, the latter being cheaper. If you are a leisure centre that uses electric- ity for 24 hours a day, then this would be the ideal con- tract for you. There are also Seasonal Time of Day (STOD) contracts where you can adjust your peak pro- duction times around the cheaper rates.
I've just entered a contract for three years. Can I get out of it if I want to? This depends on the terms of the contract. Suppliers can often make it very dif- fi cult for you to get out of contracts so it’s important to have someone looking over things who can read between the lines to ensure you're not trapped in a con- tract that isn’t right for you.
How can suppliers justify all of the extra charges? There are two factors at play here. Firstly, coal-powered electricity is on the decrease due to its widely publicised
Tendering for energy is also becom- ing more dynamic. The technology now available allows us to create a com- petitive pricing environment in which you can compare each supplier and establish all of their extra costs, work- ing in much the same way as price comparison websites do. This 'Online Reverse Energy Auction' turns the system on its head and means that suppliers are forced to offer their best
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environmental harm, there- fore suppliers can charge a premium for what's becom- ing a precious commodity. Secondly, suppliers may also import energy from other countries and the logistics of this make it a much more expensive process – a cost they pass onto the consumer.
Can I get out of paying the government’s environmental charges? Not always. These are com- pulsory charges that are designed as an incentive to use less carbon-produced electricity. These are often charged per kWh used so if
rates to win your business. Of course there are no quick fi xes.
Energy is an essential commodity and as such we are in danger of pay- ing through the nose for something we know we can’t function without. However, there are new ways to shop around for energy and as more busi- nesses become wise to their buying options, they're fi nding ways of playing energy providers at their own game. ●
Noah Andrie is head of site operations at The Energy Desk T: +44 (0)800 3777 889 F: +44 (0)1282 877081 E:
info@theenergydesk.co.uk www.theenergydesk.co.uk
you use less, it then follows that you pay less. However if you procure green energy from renewable sources, there are ways to eliminate the Climate Change Levy.
What's the difference between a fi xed and fl exible contract? A fi xed contract means that you're tied into paying the same cost per kWh for the duration of the contract. A fl exible contract is much more fl exible, whereby you get the chance to repur- chase your energy at a reduced rate if the costs in the market go down.
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