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wholesale energy purchasing For the first time ever, regardless of usage, cultural organizations can combine their energy purchasing power with others to gain entry into a market that has until recently been denied to them simply because they did not purchase enough - this has now changed. Wholesale energy purchasing is where companies buy energy from the wholesale energy market where it is traded as a commodity. By combining the energy consumption of a number of organizations in a portfolio arrangement, arts organizations are able to sit alongside charities and blue chip companies to take advantage of considerable savings in their energy costs. Wholesale energy purchasing is managed by our partners Inenco who now manage over £1 billion in energy usage for organizations of all scale looking to take advantage of lower-cost energy supplies.
Advantages Conventional tender-style purchasing can leave organisations at the mercy of the market on any given day as energy prices since de-regulation can fluctuate hourly. You are then locked into a fixed price as set at the point of contract sign off. The supply of energy and price you pay is divided into three main components: 1. Generation: accounts for 70% of the final billed price, 2. National distribution – accounts for 25% of the final billed price 3. Local distribution and billing – accounting for 5% of the final billed price. Conventional tendering negotiation allows for movement within component 3 and so there is little real room for manoeuvre on pricing. Purchasing direct from the wholesale market allows for considerable shift in the actual price you pay and takes your purchasing into component 1 where 70% of the price is generated and energy is purchased flexibly. Wholesale energy purchasing via AQ Energy allows you to buy for delivery tomorrow, next week, the next month, next year or to almost any specified future date whenever the energy traders see an advantageous price to you. The Inenco wholesale scheme has the endorsement of the Confederation of British Industry.
Benefits Buying on the traditional market is highly risky as the user has only one chance to set the annual price but by joining this scheme, the risks are managed by Inenco’s professional energy traders, thereby improving your chance of achieving better prices. Clearly pricing fluctuates but this scheme allows you to potentially take advantage of falls in energy pricing immediately rather than waiting for these to be passed on by your supplier at a future date at the time of contract negotiation. Conventional billing and supply is still maintained as energy is delivered and billed by selected distributors who bill the prices previously set by Inenco’s traders. Therefore billing will remain familiar.
Cost Fees for being part of this service are included in the delivered price and so there is no cost to you at set up. The term of the agreement is 36 months minimum with the option to continue thereafter.
Call 0800 316 9870 find out more. |
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