Feature
Blended Energy – Five Important Considerations For Facilities Managers
Size – While you may expect businesses of all shapes and sizes to pay a similar price per unit for their energy consumption, this is rarely the case. In fact, the larger your business, the better price per kWh you’re likely to receive. Although this may seem counterproductive for energy suppliers, costs are calculated based on economies of scale.
Type – Depending on your business type, rates will vary considerably. The typical office block will be offered a standard tariff, whereas manufacturing sites are predicted to use more power and therefore will attract better rates. Industrial businesses receive lower prices still, thanks to their ability to receive electricity at much higher voltages.
Tim Broadhurst
With commercial energy prices rising and grid insecurity an increasing concern,
blended energy programmes
are becoming ever-more commonplace for businesses nationwide. Here, Tim Broadhurst, CCO at CooperOstlund, gives his advice for companies considering combined heat and power (CHP) technology to generate energy on-site.
For the typical householder, choosing a suitable energy provider is relatively straightforward. Simply enter your details into any price comparison website and each of the ‘big six’ will send you an immediate quote.
For any facilities management professional, however, energy management is a considerably more complicated process. There are far more wide-ranging energy plans available for businesses compared to consumers, with prices varying hugely depending on size, type, location, use and payment terms.
20 fmuk
Location – UK suppliers will charge wildly different rates depending on the location of your site. This can be due to the geography of their own power plants or availability of energy infrastructure. Prices for British Gas’ electricity, for example, vary from a low of 17.38 p/kWh in North Wales to a high of 24.77 p/ kWh in the East Midlands – a difference of 42.5%.
Payment terms – According to research from British Business Energy, the commercial price per kWh electricity for each of the UK’s top 11 energy providers varies significantly. Rates fluctuated from 10.1p to 27.8p, while standing charges varied from 27.4 p/ day to 159 p/day. Although the lower costs are obviously more attractive on the surface, each provider offers savings (between 40-60%) for fixed-term contract payment terms, with most providers offering rates of less than 10 p/kWh.
Rather than a ‘quick fix’, securing the best possible commercial energy deal is almost a full-time job. But with almost every business depending on the grid for its day-to-day operations, negotiating a complex marketplace, while remaining cost-efficient, is fast becoming critical for time-strapped businesses.
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