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Utility Broker Charges are High |
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Thursday, 01 July 2010 09:09 |
During an investigation for a new Utility Bureau Service client of ours, it came to light that the commission being paid by the electricity supply company to the Utility Broker who formerly acted on behalf of this new client, was about twice as much as we are now charging as a fixed fee.
As we all know, any commission that all Utility Companies pay to a Brokers, is added to the prices at the time of tendering so that clients pay for the commission but don’t know how much it is as there is no legal obligation to disclose it. Therefore, in this instance and in the majority of all other cases, the client ends up actually paying more for the Broker than paying us a fixed fee. However, the client thinks that they are saving money as the many Brokers claim that their service is free or self financing. In addition, our own approach is a much more comprehensive service as we take over all of the procurement and billing duties (checking, validation, chasing credits etc) whereas, most Brokers do not. The end result is client’s of ours get a much better Utility Consultancy service but at a much lower overall cost.
It is about time Government introduced legislation to stop this practice as many organisations are led to believe that using a Utility Broker is cheaper than using our type of Utility Consultancy.
To find out more about our approach, contacts us today. |
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Unwelcome Impact of England's World Cup Exploits |
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Tuesday, 29 June 2010 12:26 |
While most of us just want to forget about the recent displays by the National team at the 2010 FIFA World Cup in South Africa, it is interesting to note the effects on the market at the times of England's recent matches. Fortunately for most (if you can consider it as 'fortunate'), the majority of England's games were outside of normal office hours - but the effects of the Slovenia game at 14:00BST on Wednesday June 23rd saw a lot of staff from all lines of work absent from their posts which gave an irregular market movement and resulted in suppliers withdrawing prices as a knee-jerk reaction (something some of the players were missing perhaps...).
Although market movements can very rarely be put down to single events, the fact that some traders and suppliers were among those absent from work (of course, being the expert energy consultancy we are, we had all hands on deck at all times!), and with many production lines reducing output during the game - the blip in usage and the inability to communicate using the normal procedures resulted in a 'better safe than sorry' attitude as suppliers covered their backs and pulled prices at short notice. This, of course, will have resulted in a lot of wasted time and subsequently duplicated work for those looking to secure business at that time.
In order to take the stress out of utility procurement and utility management, get in touch today and see what we can do for you. |
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China to get “Tough” on Energy Efficiency |
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Wednesday, 23 June 2010 10:12 |
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Recent reports indicate that China is to get “tough” on companies who do not meet Energy Efficiency targets.
The current Chinese target is to reduce the energy intensity of the economy (defined as the amount of wealth produced per kWh of energy consumed) by 20% between 2006 and 2010. In the previous four years to date, the reduction achieved is said to be 14.38%.
Wen Jiabao, the Chinese premier, is apparantly stressing his willingness for the Chinese Government to take drastic action to ensure the target is met - although clearly, there is not much time left. Wen also declared intentions to shut down older coal fired electricity generating units among a number of other measures to increase energy efficiency of utilities. |
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Tuesday, 22 June 2010 12:08 |
Following the last 6 weeks of steady price increases, the last few days has seen the market soften somewhat. Although the current position is still akin to markets in 2005-2006, and is in a very good place, it might be that the lowest points reached in February and April will not been seen again for the foreseeable future.
As experts in Energy Procurement, we put the majority of our clients' business out to tender at the beginning of this year and have secured the bulk of our contracts for this calendar year, with huge savings being seen over both current and previous contracts, and now over the current markets.
Although predicting the energy markets has been described by at least one noted commentator as "a mugs game" - with our in-depth market knowledge and preferred industry partners, our Utility Consultants constantly track the market and look at worldwide events which may cause market changes. We are also in regular contact with all of our clients for energy management as well as bill validation, which enables us to secure the best deals possible, at the best time to suit our clients and take advantage of the market.
Contact us now if you're not already reaping the benefits of our Utility Bureau Services. |
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Update on Oil Leak in Gulf of Mexico |
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Tuesday, 08 June 2010 07:59 |
Further foiled efforts to stem the oil leak from "Deepwater Horizon", the mile-deep well in the Gulf of Mexico are having widespread effects on political, environmental and supply policies, but haven't really affected bottom line costs for end-users.
Following the initial failed attempt to place a giant 'bell' over the leak in order to funnel expelled oil aboard waiting oil tankers, and the subsequent failed effort of dumping 'heavy mud' directly onto the leak - BP are now preparing to remove the damaged pipeline and place a containment dome directly over the wellhead - the results of this are looking favourable, but BP "cannot guarantee success" as such a method hasn't been used at depths of 5,000 feet underwater before.
Estimated to have already wiped billions of US dollars off BP share prices, BP have spent almost $1bn trying to repair the problem and face massive fines which, under US Federal Law could range from $75 million to $10 billion.
So far market fluctuations have retained their recent trend of small spikes and troughs - the financial affect on BP, one of the world's largest oil companies, should not result in drastic increases in oil prices - being a commodity, oil is sold directly to market for whatever the market is willing to pay - no one company will have much influence on prices; unless they massively reduce output, which in this instance is highly unlikely.
Being experts in Energy Procurement we will of course be keeping track of events and possible impacts on prices and recommend best steps for our clients as part of our Utility Bureau Services. |
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Energy Bill announced in Queen's Speech |
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Thursday, 27 May 2010 09:41 |
Legislation is to be introduced that will improve energy efficiency in homes and businesses, will promote low carbon energy production, and will secure the UK’s energy supplies. The Bill will provide a step change in the provision of energy efficiency measures to homes and businesses, and put in place a framework to deliver a future with secure, low carbon energy supplies and fair competition in the energy markets - the latter of importance to Utility Management Consultants.
Energy and Climate Change Secretary, Chris Huhne said,
"The Queen's Speech and last week's programme of Government make clear that energy security and taking real action to tackle climate change aren't add on extras for this new Government, but are vital to our national interest."
"The Energy Bill is designed to help consumers put a stop to wasting energy in their homes through a green deal while making sure our energy system is fit for the 21st century" |
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Our Utility Consultants saved our client £85,000. |
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Tuesday, 25 May 2010 15:17 |
A Utility Bureau Service client was being held responsible by an energy supplier for charges in excess of £85,000 relating to a meter in use during 2005-2008. This was due to non payment for the meter which had long ago been removed by the supplier.
Discussion between our client and the supplier had gone on for a few months without resolution with the debt finally being passed to a collection agency.
We were asked to step in and sort the matter. This we did which included a site visit by an electrical engineer. We were able to quickly prove to the supplier that our client was not responsible for the debt and arrange with the supplier to cancel the debt collection and re-direct the charges to the correct tenant. Our Utility Consultants thus saved our client the £85,000. |
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Slight Increases in all Power Prices |
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Tuesday, 25 May 2010 13:00 |
The last week has seen an unwelcome, but not unexpected rise in the wholesale prices of gas, electricity and oil - with prices peaking at approximately 11% higher than those of the same time last month. Although the middle of May saw a dip in prices, an upward continuation has since come into place showing a slight, but steady increase.
As always, no one factor can be solely responsible for this, but it can be assumed that the uncertainty over the new coalition government and their confusing and somewhat contradictory plans for energy and climate change can be taken into account.
As an expert in Energy Procurement and Utility Management, we have taken advantage of the recent low markets for many of our clients who will be enjoying the savings secured as far away as September 2012 in some cases.
If you aren't yet taking advantage of our Utility Bureau Service, it's not too late to get in touch and see how we can benefit your company's energy management and spending. |
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Our Fees Repaid in a Few Weeks |
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Thursday, 20 May 2010 09:13 |
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By using our close working relationship with all suppliers of electricity and natural gas, we were able to negotiate early registration of supplies for a new Utility Management client of ours as opposed to the standard first of the month start date offered. This will save an additional £5,639 by moving them away from their high out of contract rates as quickly as possible, on top of an annual saving of £102,884 for negotiating a better contract.
Our fees will be repaid in a matter of a few weeks confirming once again the high value of our Utility Bureau Service. |
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Reducing Carbon Dioxide Emissions |
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Monday, 17 May 2010 12:38 |
Both Centrica (the parent company of British Gas) and the UK Government have set themselves targets to reduce emission levels by 27 per cent and 10 per cent respectively by 2012 and 2011 respectively.
Following EDF Energy's purchase of British Energy last year, Centrica slipped down the 'green table' as the cleanest of the big six UK generators, and aim to get back into pole position. As part of the incentive, Centrica plan to acquire new wind farms in order to increase its existing 372 MW of operating wind capacity, starting with completion of the 250 MW Lincs. Offshore Wind Farm which is expected to come on-line this year.
Likewise, Central Government will go greener by cutting carbon emissions by 10 per cent in 12 months, new Prime Minister David Cameron has said. Although no detailed plans have been released, it is expected Smart Meters will be utilised in order to report real-time on energy usage, as well as cutting unnecessary travel and 'out-riders', further reducing carbon dioxide output. Although some sceptics argue that the 10 per cent is easily achievable by merely increasing staff efficiencies and energy awareness, the new Government said it is going to make "fundamental changes" to Britain's energy use and supply.
Get one step ahead of the bandwagon and contact us today for advice on your own Energy Management and take advantage of our expertise in Utility Consultancy and Utility Management. |
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Fears of Adverse Effects of Financial Subsidy for Green Central Heating |
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Wednesday, 12 May 2010 08:20 |
Reports this week of importance to Energy Consultancy and Utility Consultancy firms and their clients indicate that there might be quite sharp rises in energy bills because of a proposed financial subsidy for green central heating. This new renewable incentive which is supposed to be available from April 2011, will enable anyone who installs renewable heating to claim a subsidy.
It is feared by many that the effect will be to drive energy bills up as a result because ALL energy consumers will pay for the subsidy.
It is unlikely that the scheme is going to be cost effective and, perhaps, it is an area that needs to be looked at by the new coalition Government with a view to replacing it with a more well thought out scheme that will be self financing. |
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