Archive for June, 2015

The latest ESOS-related survey found that only a third of qualifying businesses asked were aware of the requirement to conduct an energy audit by 5 December this year.

The Verismic survey of 100 companies also found that most had low awareness of the penalties for non-compliance, both financial (£50,000 and/or £500 per day) and reputational, with qualifying companies not completing an ESOS assessment at risk of being publicly named and shamed.

With awareness of the Energy Savings Opportunity Scheme requirements just 24% in the retail, distribution and transport sectors companies are calling on the government to do more to raise knowledge of the scheme.

Depending on your organisation an audit is likely to take at least 2-3 months but quite possibly considerably longer so it’s important to select a Lead Assessor and start the data collection and verification process as soon as possible. With ESOS covering transport as well as building and process energy use it’s also quite likely that data collection could take longer than anticipated.

For more information on ESOS do get in touch: rcampbell@energyandcarbonmanagement.com

 

 

 

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Leaving energy contract renewals until the last minute is all too easy but could leave you paying unnecessarily high prices. By starting the process at least 6 months in advance, preferably sooner, you’ll reduce exposure to the volatility of wholesale energy markets and ensure you’re in the right contract for your organisation.

  • comparing prices can be difficult: don’t rely on comparing unit rates as the best way to evaluate competing offers – different suppliers handle non-energy costs (green taxes, distribution charges etc) differently, with some including them in the unit rate where others don’t. Ensure you’re comparing like-for-like as making a decision based on the wrong data could prove costly.
  • plan ahead: volatile wholesale energy markets offer both an opportunity and threat – timing your renewal for when the market is low could generate savings, but get it wrong and you could pay a premium. Track the market (or work with a consultant who does this for you) to buy when the market is in your favour.
  • don’t wait until September: most commercial energy contracts renew in Sept/Oct, which means suppliers are at their busiest and can sometime pick-and-choose who they work with, meaning prices may push up. Avoid the Autumn rush and give yourself time to identify the most suitable offer for your organisation.
  • support budgeting: rather than add a % cost to next year’s utility costs, request a renewal quote from your supplier at budget time – even if you don’t sign a new contract at that point you’ll gain useful market intelligence that informs next year’s financial planning
  • contract complexities: suppliers are coming up with new and innovative products – flexible, market trackers, baskets, risk managed – alongside the traditional fixed contracts, which offer opportunities but which can also be difficult to decipher. Ignoring these options could be a missed opportunity however, and while time is needed to ensure you’re selecting the right contract-type for your business, you could be missing out by staying with your usual fixed contract.
  • never go out of contract: out-of-contract rates and automatic renewals are very, very rarely the best option, and are often up to double standard rates so make sure you renew in plenty of time
  • energy efficiency success could impact your supply contract: if you’ve succeeded in reducing consumption it’s worth making sure that your new supply contract takes this into account so you avoid take-or-pay penalties.