How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward...

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How to Side Step the Energy Giants

Transcript of How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward...

Page 1: How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward price curves 3.How suppliers get their pound of flesh.

How to Side Step the Energy Giants

Page 2: How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward price curves 3.How suppliers get their pound of flesh.

1. Background on the energy markets2. Historic prices and forward price curves3. How suppliers get their pound of flesh4. How to procure energy effectively5. How to avoid billing overcharges

Agenda

Page 3: How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward price curves 3.How suppliers get their pound of flesh.

Background on the energy markets

• De-regulation started in April 1990;• Split by R.E.Cs;• Now some 38 energy suppliers for electricity

and/or gas;• Energy traded on the wholesale commodity

markets – effected by world / financial developments.

Page 4: How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward price curves 3.How suppliers get their pound of flesh.

Historic prices and forward price curves

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Zenergi Tendering History

Historical Price Forward Price When Zenergi Went to Market =

Page 5: How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward price curves 3.How suppliers get their pound of flesh.

How suppliers get their pound of flesh

• Lethargy;• Use the media to their advantage (price rises);• Lack of consumer knowledge (confusing);• Automatic roll-overs (reducing);• Non issue of termination;• Timing of when to renew.

Page 6: How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward price curves 3.How suppliers get their pound of flesh.

How to procure energy effectively

• Benchmark prices with other suppliers;• AQ Consumption x rate + other charges = annual cost

• Watch out for “hidden” costs;• Pass through• Green taxes

• Internet suppliers tend to use matrices – go for bespoke pricing;

• Renew in plenty of time; 3-4 months pending what markets are doing

• Quote on flexible rather than fixed.

Page 7: How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward price curves 3.How suppliers get their pound of flesh.

How to avoid billing overcharges

• Take regular meter readings;• Especially if contract renews – catch up read• Consider AMR• Watch out for meter rolling over

• Make sure the contract rate matches the invoices;

• Make sure VAT rate is correct – impact on CCL;• Make sure you are being billed for the correct

meter!

Page 8: How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward price curves 3.How suppliers get their pound of flesh.

Thanks for listening!

Kevan WalshCEO

Zenergi Ltd76 High Street, Lyndhurst, SO43 7BJ

023 8028 [email protected]

www.zenergi.co.uk