Energy Cost Reduction
Competition in the UK power markets has been around since 1990, with the market initially being deregulated and opened up for competition for the country’s largest firms.
This was later followed up in 1994 with retail competition being opened up for around 50,000 sites with a maximum demand of 100 kW.
This effectively meant that firms could gather up their site and meter data information and effectively tender it to a number of competitive suppliers in order to achieve the best package. Price has always been the primary consideration, but switching can also provide quality of service. The physical wires to your building and the power that you use is still the same – it’s just your nominated supplier that changes.
In the early nineties, there were massive savings to be made, as large industrial firms rolled off from legacy tariff prices and onto highly bespoke deals optimised around their usage patterns.
1n 1998, the market deregulated further – with sub 100 kW businesses able to switch suppliers – although in this case, the products were less customized (due to the millions of potential customers), so pricing was more tariff based…much like it is today for domestic users wishing to switch suppliers.
Today the margins are a little slimmer, but decent savings can still be made. However, this relies more on understanding the fundamentals of how a firm usages energy and how this fits with the suppliers preferred risk profiles and transfer pricing. Gone are the days where you could make big savings just by sending some consumption data to the 14 national suppliers.
How we can help
Belbridge Consulting are experts in energy retail and supply – having worked through the UK industry deregulation from the start. We understand how supplier pricing models work and how to optimise your usage to achieve the best possible pricing models.
We can model your meter reading data, whether it’s based on half-hourly data or actualised advances, ensuring that the data is reflective of your operating processes and load shape.
We can then look at the base energy costs, before the distribution and transmission use of system charges are added on – deciding whether an energy only or fully inclusive price is the most appropriate for your firm.
We will work with you to gather data in the format that suppliers need, and can work with you in an advisory capacity to ensure you get the best possible deal for your business.