THE ENERGY COMPANIES AREN’T PASSING CHEAPER PRICES ONTO YOUR BUSINESS. HERE’S HOW WE ENSURE THEY DO
How long will we see cheap energy prices? According to US-based energy professionals, surveyed by Capital One Bank, we won’t be seeing any oil price rebound for the next year at least.
In fact, one Stanford University economist predicts the price drop may even last for “the next couple decades.”
Unfortunately these savings are often not passed onto the end consumer, whether households or businesses.
As the chart above from the Daily Telegraph shows, the prices we pay for our energy have remained more or less stable while the price that the energy companies pay has gone down.
Even when public and political pressure does cause utility companies to react, the savings passed onto the end user are fairly minor.
In July last year British Gas said that it would be cutting its annual energy bill by £35 a year for households — that barely amounts to one cup of coffee a month!
Why your business should take advantage of an energy procurement service
Whether prices stay low or do indeed start climbing again, as a business you want to keep energy costs down to the absolute minimum.
That’s why rather than dealing with the energy companies direct and having them give you a solution which ultimately looks to maximise the margins they make off you, it makes sense to have utility cost consultants such as The Monarch Partnership looking after your company’s energy bills.
One of the most popular services we offer businesses is our Energy Procurement service.
The first thing we do is look at the historical data to build up intelligence around your past energy use and how much you’ve been charged. This in itself can lead to a significant saving as we often find businesses have been over-charged for their energy use (see www.slideshare.net/MonarchPartnership/energyauditarticle).
We then put out a Request for Quote (RFQ) to energy suppliers on your behalf, and present the tender results in a jargon-free format. We speak their language, there is no reason why you should have to.
To support the energy tender process, our team has access to comprehensive real-time market data.
The Monarch Partnership use Thomson Reuters trading screens to assimilate pricing data, pricing averages and market forecasting in real time.
This information is used by all the major energy suppliers when producing quotations. The Monarch Partnership’s access to this data allows us to interpret how suppliers are likely to quote on the short term forward market and to be better placed in our timing of pricing/quotations for supply contracts.
Finally, we offer flexible energy services, where our customers take advantage of market volatility, lock in energy prices in advance, and have certainty as well as the ability to save money.
How much can this approach save businesses? A six figure saving is entirely realistic. According to one of our customers, the Genesis Housing Group:
“We have an extremely successful relationship with Monarch Partnership which has developed over the last 12 months. During this time they have helped us to organise our portfolio and tendered a number of utility contracts resulting in savings of over £500,000. Which in such a short space of time is an immense achievement.”
Purchasing Manager, Genesis Housing Group
However complex your energy needs, we can help. Contact us now for a free audit and quotation where we tell you how much you can save.
Arjan Dosanjh, Director, The Monarch Partnership