Large business consumers have the ability to negotiate their specific contract terms. This is great, as you can tailor exactly what you need, but it’s not great if you don’t understand the market.
That’s where we can help you – our expertise in this area will guarantee you the best products at the best possible price.
It’s our job to understand and manage the complexity and to explain and demystify the process for you – as your trusted advisors.
To provide you some colour on the market workings, large consumers like yourself typically have sophisticated metering installed which records your usage at half-hourly intervals. There is an ongoing initiative to move businesses who were formally on Maximum Demand (MD) meters (which are profile groups o5, 06, 07 and 08) to full half-hourly metering (profile group 00). This means your metering costs will go up, but you will have a range of bespoke priced deals which were previously unavailable to your business.
Smart negotiation on new contract terms will offset the metering costs many times over.
To achieve this, we will work with you to collate all of the information required to bid for your supply. This will be detailed metering data for the previous year, plus details of your sites, supply points, meter Ids, capacity, peak demand, operations profile and legal entity details.
A tender document will then be submitted to the suppliers, who in turn will submit their bid prices to win your business. These bids will be negotiated and fine-tuned, before you contract with the partner which is best for your business.
We will manage the process and act as your trusted partner throughout, advising on the most effective pricing models for your business, whilst navigating you around pitfalls and complexities which would erode any savings.
Typical pricing models to consider will include:
- Fixed – the supplier offers fixed prices. They take the risk on costs moving upwards, but you cannot benefit from costs coming down either.
- Flexible – the supplier offers flexible prices, which will increase or decrease over time in line with underlying costs.
- Bundled – The supplier offers prices which include all underlying costs bundled into a combined rate price.
- Unbundled – The supplier offers prices which have various combinations of underlying costs bundled or unbundled (unbundled meaning they are passed-through to the customer at cost). Underlying costs will include transmission losses, transmission charges, distribution losses, distribution charges.
Other options include different contract periods (e.g. 12 months, 18 months, 24 months, etc.).
Large business consumers are fantastically placed to take advantage of an open market. Their sophisticated half-hourly metering means that any tariff structure they require can be modelled, and their size and spend means suppliers are often prepared to offer more attractive, account managed deals in order to win you as a customer.
How we can help
Belbridge Energy have worked extensively in business energy contracting and are able to provide you with all of the support you need, from gathering your data and preparing tender documents, through the negotiation process with the market suppliers.
Utilise our skill and knowledge to make sure your business benefits from the best possible energy deal, saving you money and improving the level of supplier services you receive.