How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward...
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Transcript of How to Side Step the Energy Giants. 1.Background on the energy markets 2.Historic prices and forward...
How to Side Step the Energy Giants
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
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.
Historic prices and forward price curves
Sep-99
Jan-00
May-00
Sep-00
Jan-01
May-01
Sep-01
Jan-02
May-02
Sep-02
Jan-03
May-03
Sep-03
Jan-04
May-04
Sep-04
Jan-05
May-05
Sep-05
Jan-06
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
Jan-12
May-12
Sep-12
Jan-13
May-13
Sep-13
Jan-14
May-14
Sep-14
Jan-15
May-15
Sep-15
Jan-16
May-16
0
10
20
30
40
50
60
70
80
90
100
Zenergi Tendering History
Historical Price Forward Price When Zenergi Went to Market =
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.
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.
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!
Thanks for listening!
Kevan WalshCEO
Zenergi Ltd76 High Street, Lyndhurst, SO43 7BJ
023 8028 [email protected]
www.zenergi.co.uk