Energy Management Workshop
The Workshop Group
Contact Information
CALL US: +44 (0)1233 225403

What you need to know

The energy industry has changed significantly since the start of the decade under EU Directive. The extended range of services offered by suppliers, the rise of energy reduction technology, the new renewables sector and areas of Government and EU legislative compliance gives you a whole new path of critical choice, risk, challenge and opportunity – Key checks and decisions will need to be made around the strategic method of your energy usage and your current position regarding possible alignment to mandatory compliance or voluntary but beneficial practices. Choosing the right energy partner for this is critical.

It is staggering that a majority of businesses, through no fault of your own, do not know that there are indeed mandatory areas of compliance or the opportunity to promote your business in these areas. There are new rules and regulations that require a whole new state of readiness, where failure to comply may lead to civil penalties, including fines, and perhaps a risk to reputation. Moreover, the unpredictable nature of future regulation has led to concern in terms of how to manage the risk in the face of rule and regulation changes.

Through our award winning services, EMW will identify areas of concern, protect you through our industry knowledge, insight and expertise (mitigate risk), and execute the appropriate level of solution for your business to the highest of standards where and when they may be required. We become part of your team.

Once key areas have been identified and you feel that you have understood our advice, with forward action instructed accordingly by you – it then needs delivering. It is at both these stages that EMW excels as one of the elite and truly looks after our clients no matter how long it takes and no matter your size.

This is a serious situation for business in the face of an ever increasing volatile energy market and EU regulation so you won’t see any calls to action on our website for obtaining quotes (your money - quick and easy - and to hell with everything else).

The days of the artificial p/kwh pricing headline have gone and should be ignored where common sense now needs to prevail. There are a multitude of factors that can have an effect on the level of pricing presented to you, your overall energy costs and your strategy as a whole.

And we are positioned to look into them professionally, with transparency and to do what is simply best for you. 

We take a holistic approach to energy procurement. It isn’t about what we can extract from you with regards to charges from additional services; it is determining your requirements and making anything you don’t need redundant.

It is critical that your energy procurement decisions are aligned with the overall strategy and position of your business including your energy contract and consumption. We would like to be able to analyse, manage and monitor this through a phased energy management life cycle. The length of this cycle is determined from various factors including the size of your business and the industry that you are in. Our services range from straight forward utility contract comparison, new connections through to intricate risk management strategies. 

We will partner with you to determine your potential energy strategy through our free initial consultation and detail this on our energy assessment report – there is no charge for this either. This is non-jargon based whilst presented in an honest and transparent manner on a traffic light basis. Enabling you to benchmark against other providers for reassurance and be informed as part of business pre-planning. Once you are comfortable and want to move ahead we will present a clear proposal where you can also understand any costs.

The following areas will be covered as part of our initial assessment:

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What your potential strategies could be and why. (Energy & Sustainability)
star.png   What is the best method for you to purchase. (Energy Procurement Services)
star.png   In what areas you may need control. (Power Reliability and Metering)
star.png   How you can optimise your energy assets. (Infrastructure and Efficiency Upgrades)
star.png   How you can measure performance. (Measurement & Reporting)

 

 

 

 


Our step by step approach to dealing with us is as follows:-

1.  Face to Face Meeting

Understand and talk about your business.

Listen to any problems & queries you may currently have.

Listen to your current position and strategy.
 

 2.  Investigation

We send you a letter of authority.

We investigate your current supply set-up.

We review your options.

We send you our assessment.

You review and provide the go ahead to proposal in agreed areas.
 

3.  Proposal

We explain improvements and solutions.

We design strategy ideas and execution.

We define the process and set objectives.

We consider and detail the impact in terms of savings.

Our remuneration for the services rendered to you will be covered by the winning supplier you choose as part of the strategy. We will tell you how much this is within our proposal.

It’s all in the timing

A fixed price strategy is commonly used by small to medium enterprises. The concept being that it minimises your uncertainty of a final price, which can be effected by market volatility (as much as 40%) through social and political factors, speculation, industry events, supplier portfolio of energy, worldwide events and even the weather (supply and demand). A fixed price takes the risk of market increases away from you and places it with your energy supplier.

It will provide you with budget certainty and assists with financial planning; however, it isn’t without risk. Timing and insight is crucial and locking in at the wrong time can unnecessary add 000’s to your energy costs.

Individual factors that can also affect your fixed price include the following:

star.png     Length of supply term
star.png   Supply Start Date
star.png   Consumption Levels
star.png   Peak usage
star.png   Profile Class
star.png   Distribution charges
star.png   Current Tarif
star.png   Business Credit Position

 






How we achieve the best result for you:

star.png    By reviewing every single aspect of your current supply and unlocking charging areas (above) that can help to reduce your costs further
star.png   By obtaining the most competitive rates in the market from all energy suppliers and depending on your circumstances help you reduce contract costs, minimise any increase and/or balance out. We will achieve this through wholesale markets and by supplier contract negotiations
star.png   Unlocking optimal credit terms through skilled negotiation and the way we present organisations to reduce any credit issues
star.png   By tracking the wholesale market well in advance of your renewal date and securing the contract at the right time. Timing and insight is crucial to minimise risk and achieve the best deal




 

By removing the burden on managers which can lead to rash and poor decision. We will take complex matters and administrative tasks away from them so they can fully concentrate on their role to help drive your business.

Please contact us for Free Energy Assessment - for more information please click here

This is generally reserved for large companies that use over 6Gwh per annum, however, smaller businesses can benefit from being part of a collective strategy (otherwise known as a consortium or an energy basket) where their combined usage as a singular entity will qualify them to benefit from the flexible purchasing method.

In a flexible contract you will enter into a contract with an energy supplier who will ensure delivery of the power and assume responsibility of the meter, but not for the purchase of the power. You will be allowed to contract directly with a generator (wholesale market) over the period of the contract. And as the holder of the contract you can then choose when to purchase power in tranches of months or on a month by month basis at any point on a forward view.

To execute this accordingly you will need to have a dedicated purchasing team reviewing market data or an experienced purchasing consultant who will conduct the fixing on your behalf and pick the appropriate time to buy the power over select periods.  If you do not lock in any prices then typically the contract will automatically lock into a price before the day, week or month of delivery (usually the average weighted price of that period or previous month)

By utilising EMW’s insight and experience you can gain advantage through our knowledge of the market, our ability to choose these optimal times for purchase and, if appropriate, sell back surplus energy. It takes skilled execution and the market working in your favour; however you can make substantial gains.  We will also undertake the administrative actions to instruct the supplier to purchase from the generator through your authority and we will also manage the complexities associated with these types of products.

This is a significant buying decision and you have to comfortable with your attitude to risk (low or high), and whether these types of products are right for you. That being said, over recent years and from a competitive viewpoint, energy suppliers have brought out a range of flexible contract options that will help suit your position and the diverse commercial requirements of companies as a whole.

Please contact us for Free Energy Assessment - for more information please click here

Summary Benefits of Flexible Contracts:

star.png     Reduces the risk of fixing all of your volume at a time when prices are at a peak
star.png   Allows you to choose a supplier without completely committing to the current state of the market
star.png   It opens up a whole new strategic method of cutting your overhead
star.png   Spreading the risk can reduce the impact to you of market volatility
star.png   70% of your final invoice price is for generation. You can influence this through buying from the wholesale market
star.png   You can be smart and combine this with other strategies – putting you in a strong sustainable position for the future and helping to eliminate any nasty surprises

 

EMW will also help you with a planned risk strategy for your business and how you can minimise the risk associated with not buying a fixed price contract. The greater the benefit the higher the risk.

Please contact us for a free full initial consultation.

Group Purchasing Agreements ‘Basket Deals’ enable bulk purchasing of energy where each individual member will benefit from a lower contract price than they would gain individually. Smaller business particularly benefit by being in a group of higher users as it is the volume of the group that is commercially calculated, not on an individual basis. They also benefit from the account being treated as priority by the supplier – where an individual account is one of hundreds of thousands.

By combining the consumption of a number of businesses as a portfolio we can trade this as a single entity and bring the advantages of either fixed or flexible to much smaller organisations.

Please contact us for Free Energy Assessment - for more information please click here

Summary of benefits are below:

star.png     Energy cost reduction that you will not be able to achieve as an individual entity
star.png   A long term solution with sustainable options
star.png   You can take advantage of further phases of pricing
star.png   Our experts purchase energy at the right times in the market providing peace of mind as you will be at reduced risk from spikes in the market that can have a major effect on prices and increased costs
star.png   Flexible joining before, during and after the term
star.png   Bespoke metering solutions including smart meter installations for all electric contracts
star.png   Electronic paperless billing and flexible payment options
star.png   Opportunity to join a brown or green buying group
star.png   Bill Validation
star.png   Energy Management and Efficiency advice
star.png   Regular buying group updates and news
star.png   Good forward view for EMW into demand for continued production and supply chain management
star.png   The Workshop Group networking with other business within the buying group and generally
star.png   Discount on other services within the Workshop Group

 

It’s free to join!

Non-Commodity Cost Component

What you spend on energy is not just the cost of the electricity itself. It includes a number of non-commodity charges. These are areas that we can look into to see if there is anything we can do to manage them better or make changes to better reflect your consumption. Providing further savings.

These areas include:

Duos (Distribution Use of System)

Profile Class

TNUoS (Transmission Network Use of System)

Please review the other tabs above for further information.

This covers the cost of getting electricity to your business through the local network of pylons and cabling that connect into the National Grid. They typically account for around 25% of your overall electricity costs.

One way of reducing this is by reviewing your capacity requirements. By ensuring your supply matches your current and anticipated demand you will be paying only for what you need.

Another term for this process is KVA Reduction and referenced as available supply capacity.

For example you may have moved into a site, perhaps ex-manufacturing premises, that has been set-up for 100kva (Half-Hourly), however your business operation only requires you to have 75kva (Max-Demand). By setting the correct capacity it will prevent you being charged excess capacity charges by your DNO.

Similar to the Available Supply Capacity scenario.

There are significant savings to be made by ensuring that you are on the correct profile class (tariff) for your energy consumption. Profile classes extend from 03/04 (Non-Domestic) 05 to 08 (Maximum Demand) and 00 (Half-Hourly). It is the size of your business and level of consumption that determines your profile class. In relative terms 03/04 = Small business consumption (<200,000 kwh), 05 to 08 Medium (>200,000 <690,000 kwh) and 00 Large (>690,000kwh).

For example If you’re on an 04 (day/night) profile class however the majority of your consumption is during the day then you will be paying significantly more than you should be as the day unit rate on an 04 tariff structure is far higher than an 03 single rate (all-day) tariff. Moreover for sites whose consumption is larger than non-domestic, for example, MD 05-08 you could be being charged 03 or 04 rates.

In simple terms the higher the profile class the lower the unit rate costs and the higher the non-commodity costs. The lower the profile class the higher the unit rates and the lower the non-commodity costs. So if you have consumption under 200,000 kwh however you are on an 05 profile class you will be paying higher non-commodity costs than you should be. If you are using over 200,000 kwh however you are on a non-domestic profile class then you will be paying higher unit rates than you should be.

EMW will ensure you are the correct profile class for your business so you are not paying excess charges in the wrong areas and manage this through with your supplier.

Triad Management for Large business.

Traids is a methodology where the TNUoS charges are distributed between suppliers, who then recover them from electricity customers. The charges formulated are known as triad charges, and should be shown on electricity invoices.

These charges are relative to your electricity demand at the three highest peaks in the national grid over winter. (Nov – Feb). If you reduce demand over these triad periods your charges will be reduced proportionally. These periods are in half-segments, and not known in advance, but can be forecast as they typically occur between 4.30pm and 6.30pm on weekdays during cold weather.

When a triad is likely you will need to reduce your consumption for up to two hours. This can occur between 15-25 times per year. However careful management and forecasting can see significant savings.

If you’re a large business and wish to find out more about this please contact us.

For businesses with multiple sites your supply of electricity and gas can be made complicated by the number of meters involved. It will probably mean a lot of administrative and files associated with multiple contracts, multiple invoices, multiple suppliers and multiple contract end dates.

There are additional management functions required in order to prevent sites rolling over onto inflated rates through to the monitoring of invoices to ensure correct charging. EMW offer a bespoke service that takes the headache out of this process through the assessment of your existing contracts, negotiation with suppliers for the most cost effective solution and query resolution alongside monthly invoice validation and administration of the account.

Grouping your sites together

If you’re a multisite business, each one of your sites has its own electricity meter. Our recommended approach would be to combine your supplies into one contract for each utility, all with the same end date and with one supplier. This would be the ideal scenario across a multitude of commercial reasons however getting there is almost inevitably complicated and time-consuming. At EMW our team are very experienced in bespoke multi-meter and multi-site energy procurement. We will do all the legwork for you, provide the free service unique to your requirements as a business, manage your account end to end, protect and advise you on other areas of the energy industry that may need your attention in areas such as legislation, enable you to benchmark site vrs site for energy efficiency and much more.

Summary benefits are:-

star.png   Significant cost reductions per site – the more electricity you purchase the cheaper it is.
star.png   Less administration – fewer contracts to sign, matters to deal with and dates to remember.
star.png   Ability to purchase energy at the best price – EMW’s market analysts will advise on the best time to purchase energy up to 2 years in advance by tracking market peaks and troughs.
star.png   Energy Management Strategy across all sites – Benchmarking.
star.png   Audit of each site and invoice validation.

 

EMW constantly tracks wholesale market movements in real time, whilst anticipating vertical and downturn trends. This crucially enables us to hedge volumes at the right times in order to obtain the best electricity and gas prices overall.

The wholesale energy market is a dynamic trading environment, subject to great volatility and liquidity through various social and political factors, speculation, industry events, supplier portfolio of energy, worldwide events and even the weather (supply and demand)

Our risk management approach focuses on identifying and quantifying the threats posed by the energy marketplace and ensuring a robust approach to mitigate them for you.

We judge the optimum balance between risk and opportunity. In order to do so EMW works closely with you to discuss your objectives, concerns, current position and preferred approach to the buying process (and energy matters as a whole).

We then formulate a risk management and purchasing strategy so you are clear about the principles and protocols regarding your purchasing decisions. These include:

star.png   Your appetite to risk
star.png   Market Route
star.png   Contract implementation
star.png   Budget constraints
star.png   Authorisation process

 

 

 

 

EMW constantly tracks wholesale market movements in real time, whilst anticipating vertical and downturn trends. This crucially enables us to hedge volumes at the right times in order to obtain the best electricity and gas prices overall.

EMW are independent energy consultants to the SME and Large business sector markets. We are an impartial source of information and remain the same with our price comparisons. Suffice to say that we source various prices and products from all suppliers in the uk – some that may not even be heard of, although are credible in their niche areas. We act completely independently and impartially, with no ties to any specific suppliers. Our prices and products that we obtain are specifically designed for the energy broker market place and through our high level relationships with suppliers.

We are very professional and transparent in our approach, working towards the best solution for you. In some instances, an energy broker/consultant may ask for a fee. This isn’t the case with EMW. Our remuneration for the services rendered to you will be paid by the energy supplier that acquires or retains you. So we will never ask you for money for arranging your contract.

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