EIC Partnership

The Business Benefits of Smart Energy Procurement

tamzidur rahman — Wed, 24 Jul 2024 16:05:47 +0000

The Business Benefits of Smart Energy Procurement

July 24, 2024

William Oliver

Head of Business Development

Overview

Adopting intelligent energy procurement strategies enables UK businesses to achieve significant cost savings, enhance sustainability efforts, and improve operational efficiency.
By securing competitive rates and using fixed or flexible supply contracts, businesses can manage price risks and ensure budget stability.
Procuring renewable energy helps reduce carbon footprints, improves brand reputation, and meets 2030 Net Zero targets.
Intelligent procurement services provide expertise in navigating complex energy markets, leveraging technology for real-time energy management, and supporting sustainability goals.

In the ever-evolving energy landscape, adopting an intelligent approach for energy procurement is becoming a crucial asset for UK businesses.

By strategically managing energy purchases, you can achieve significant cost savings, enhance sustainability and net zero initiatives, and improve operational efficiency for your business.

So, what tangible benefits could you realise by incorporating an intelligent utility procurement strategy?

Cost Savings and Budget Stability through Efficient Procurement

One of the most immediate and tangible benefits of smart energy procurement is cost control: protecting budgets, achieving savings and managing price risk.

By leveraging energy procurement services, your business can secure competitive rates and avoid potential pitfalls of market volatility.

Fixed price contracts, for example, provide budget certainty by removing all market exposure.

Market price movements, up or down, will have no impact on costs for the fixed contract term, which promotes accurate financial planning and efficient allocation of resources.

Flexible supply contracts allows you to execute a reactive trading strategy to manage market exposure and achieve the right balance of exposure to opportunity (and mitigation of risk).

Enhanced Sustainability with Renewable Energy Procurement

As we approach the 2030 Net Zero deadline, ‘renewable energy’ is no longer just a buzzword; it is a business imperative.

Renewable energy procurement is a critical component of a company’s carbon management plan and overall sustainability strategy.

By sourcing energy from renewable sources like wind, solar, and hydro, your business can significantly reduce its carbon footprint and enhance your brand’s reputation as a business that cares about its environmental impact.

There are several options to procure green energy supplies, including Renewable Energy Guarantees of Origin (REGO) and Power Purchase Agreements (PPA) depending on your budget and your energy requirements.

In a competitive business environment, every advantage counts.

Companies that adopt sustainable solutions and demonstrate a commitment to renewable energy procurement can differentiate themselves from their competitors.

This can be particularly appealing to environmentally-conscious consumers and investors looking for companies with strong ESG (Environmental, Social, and Governance) credentials.

Risk Management in Business Energy Procurement

The energy market is inherently volatile and is often reliant on intermittent renewables and global supplies, or influenced by weather, geopolitical events, natural disasters and economic shifts, both at a local and global level.

There is an unseen benefit, however: adopting an agile, flexible procurement strategy will enable your business to capitalise on market lows, and consistently ‘locking in’ lower rates can generate significant cost savings.

Naturally, there is an inherent risk, so a robust risk management strategy is essential.

A flexible procurement approach requires a dedicated team, and the ability to assess market analytics and predict outcomes, which is why businesses often rely on service partners to achieve their desired goals.

The Importance of Intelligent Procurement in Today’s Energy Landscape

As the UK transitions towards a more sustainable energy future, the importance of intelligent procurement cannot be overstated.

Carbon reporting and renewable energy sources are the new cornerstones for ethically minded UK businesses (and the Public Sector).

As we fast approach the 2030 Net Zero deadline, it is apparent that businesses have to invest more in sustainability programmes.

By adopting an intelligent procurement strategy, we can produce immediate cost savings that you can use to support sustainability initiatives.

Navigating Complex Markets with Energy Procurement Services

The energy market is complex and constantly changing. Intelligent procurement services provide businesses with the expertise and tools needed to navigate this complexity. From understanding regulatory changes to predicting market trends, these services equip businesses with the knowledge they need to make informed decisions.

Leveraging Technology for Energy Management for Businesses

Technology plays a crucial role in modern energy procurement. Advanced software and analytics can monitor energy usage in real-time, predict future consumption patterns, and identify cost-saving opportunities. By integrating these technologies, businesses can stay ahead of the curve and make proactive decisions.

Supporting Renewable Energy Goals Through Sustainable Solutions

As the UK government sets ambitious targets for reducing greenhouse gas emissions, businesses are under increasing pressure to align with these goals. Renewable energy procurement is a key strategy in this alignment. Intelligent procurement services help businesses identify and secure renewable energy sources, ensuring compliance with regulations and contributing to national sustainability targets.

How EIC Partnership Can Benefit Your Business

At EIC Partnership, we are committed to helping you find the energy contract that best meets your business requirements and your long-term goals.

Regardless of the contract type you opt for, you can be confident that your account will be expertly managed to its fullest potential, and that we will explore every opportunity to help you achieve cost savings.

Our seasoned Procurement Team will provide exceptional support, and with our timely market intelligence reports, you will have the detailed insights needed to make informed decisions that drive your business’s success.

Learn more about our Energy Procurement services or get in touch with us today to find out how much we can save, together.

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FAQs

See a selection of our most frequently asked questions.

Which suppliers does EIC work with?

EIC stands out from other energy consultancies because we’re completely independent.

This independence allows us to offer supply options from a wide range of energy suppliers, all of whom are unrelated.

Our energy advice is unbiased, giving you the freedom to make informed decisions for your business.

We have a proven track record of skilfully negotiating cost-effective contracts, ensuring you consistently get the best energy prices when you partner with us.

What if I am already with an energy consultancy?

If you’re already working with an energy consultancy, it’s a good idea to start exploring your options well in advance, preferably 18 to 24 months before your current supply contract expires.

It’s essential to distinguish between your energy supply contract and your energy consultancy agreement.
You have the flexibility to switch your energy consultancy while keeping your current energy supplier intact.

What happens after the energy procurement step?

Our comprehensive account managed service provides our clients with peace of mind throughout the entire energy procurement process.

When you choose our fixed energy procurement service, we’ll assign an account manager to you, someone equipped with the expertise and abilities to provide a customised solution that aligns with your unique needs and requirements.

The professionals who make up our dedicated procurement team are well-versed in resolving inquiries and skilled in engaging with energy suppliers to negotiate contracts on your behalf.

When is the best time to renew my energy contract?

The timing for transitioning to a new energy contract is flexible; you aren’t bound by a fixed schedule or renewal date.

Given the ongoing high volatility in the global energy market, it’s increasingly crucial to look beyond traditional renewal dates when contemplating a new contract.

UK Political Party Stances on Climate and Energy Policies

tamzidur rahman — Tue, 25 Jun 2024 11:03:28 +0000

UK Political Party Stances on Climate and Energy Policies

June 25, 2024

Ashley Game

Insight Analyst

As the UK gears up for the general election, major political parties release manifestos that reveal position on key energy issues.

Overview

Labour Party: Achieve net-zero by 2050, invest in renewables and insulation, phase out new oil and gas licenses.
Conservative Party: Net-zero by 2050, invest in offshore wind and nuclear, annual North Sea oil and gas licensing.
Liberal Democrats: Net-zero by 2045, heavy investment in renewables, emergency Home Energy Upgrade programme.
Green Party: Zero-carbon before 2050, substantial wind and solar investments, phase out nuclear and fossil fuels.

The main UK political parties have released their manifestos in an attempt to attract voters ahead of the general election on Thursday 4th July.

Climate change, energy and the net-zero transition are expected to play a central role in the election, with the environment and climate change the fifth most important issue to voters, according to a recent poll from YouGov.

In this blog we have summarised each party’s stance on some of the major energy issues including net-zero, renewable generation, nuclear, North Sea oil and gas, energy bills and household insulation.

Labour Party

The Labour party want to make Britain a clean energy superpower, to cut bills, create jobs and deliver security with cheaper, zero-carbon electricity by 2030, accelerating to net-zero by 2050.

They will invest £8.3bn in a new publicly-owned company, Great British Energy, which will be funded by a windfall tax on oil and gas giants.

They aim to double onshore wind, triple solar power, and quadruple offshore wind by 2030. They will also support new nuclear and invest an additional £6.6bn to install insulation in 5 million homes.

Labour want to ensure a phased and responsible transition in the North Sea with a promise not to award any new oil and gas licences as they say it would not take a penny off bills, cannot make us energy secure, and will only accelerate the worsening climate crisis.

However, Labour will not revoke existing licenses, such as the recently awarded license at Rosebank, and will partner with business and workers to manage existing fields for the entirety of their lifespan.

They will also ban fracking for good and have committed to not grant any new coal licences and will stop the proposed new coal mine in Cumbria.

Conservative Party

The Conservative party aim to cut the cost of tackling climate change for households and business by reducing green levies on bills, and deliver net-zero by 2050.

They will treble offshore wind capacity and support onshore wind and solar in the right places, but not on the best agricultural land or where there is public opposition.

They will also scale up nuclear power and approve two new fleets of small modular reactors within the first 100 days of the next Parliament.

The Conservatives will also legislate to ensure annual licensing rounds for North Sea oil and gas production to provide energy to homes and businesses across the country and protect high-skilled and well-paid jobs in the industry.

They will keep the windfall tax on oil and gas in place until 2028-29, unless prices fall back to normal sooner, which is expected to raise over £26bn.

They will also introduce a new energy efficiency voucher scheme open to every household in England.

This would provide grant funding towards insulation, other energy efficiency improvements and solar panels.

Liberal Democrats

The Liberal Democrats are committed to cutting greenhouse gas emissions to net-zero by 2045 at the latest, which is five years earlier than the other major parties.

They will invest in renewable power so that 90% of the UK’s electricity is generated from renewables by 2030 and will remove the current restrictions on new solar and wind power, as well as investing in tidal and wave power.

They will also launch an emergency Home Energy Upgrade programme, with free insulation and heat pumps for low-income households.

The Lib Dems want to help people with the cost of living and their energy bills by implementing a proper, one-off windfall tax on the super-profits of oil and gas producers and traders.

They will also introduce a social tariff to provide targeted energy discounts for vulnerable households. They intend to implement the UK’s G7 pledge to end fossil fuel subsidies, while ensuring a just transition that values the skills and experience of people working in the oil and gas industry.

They would maintain the ban on fracking and introducing a ban on new coal mines as well as reinstating the 2030 ban on new petrol and diesel cars.

Green Party

The Green party aim to push the Government to transition to a zero-carbon society as soon as possible, and more than a decade ahead of 2050.

They will install 80GW of offshore wind, 53 GW of onshore wind, and 100 GW of solar by 2035.

They want to see the phase-out of nuclear energy, which they say is unsafe, more expensive than renewables and takes too long to develop.

They will also invest £9bn over the next five years for low-carbon heating systems.

The Greens would cancel recent fossil fuel licences, such as for Rosebank, and stop all new fossil fuel extraction projects in the UK.

They want to remove all oil and gas subsidies and introduce a carbon tax to drive fossil fuels out of the economy and raise money to invest in the green transition.

They would also introduce a carbon tax on all fossil fuel imports and domestic extraction, based on greenhouse gas emissions produced when fuel is burned.

Reform UK

At the other end of the scale is Reform UK who would scrap net-zero and related subsidies as they believe it is crippling our economy, pushing up bills, damaging British industries, and making us less secure.

They claim that scrapping net zero and related subsidies would save £30bn per year.

However, the government independent spending watchdog, the Office for Budget Responsibility, has said that “the costs of failing to get climate change under control would be much larger than those of bringing emissions down to net zero”.

Reform say they will unlock Britain’s vast energy treasure of oil and gas to slash energy bills, beat the cost-of-living crisis and unleash real economic growth.

They would start fast-track licences of North Sea oil and gas as well as fast-tracking clean nuclear energy with new Small Modular Reactors, built in Britain.

They also want to grant shale gas licences on test sites for two years and enable major production when safety is proven, with local compensation schemes.

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FAQs

See a selection of our most frequently asked questions.

Which suppliers does EIC work with?

What if I am already with an energy consultancy?

What happens after the energy procurement step?

When is the best time to renew my energy contract?

My Fixed Energy Tariff is Ending: Steps to Take Now

tamzidur rahman — Tue, 11 Jun 2024 10:45:40 +0000

My Fixed Energy Tariff is Ending: Steps to Take Now

June 11, 2024

Rachael Thatcher

Head of Fixed Pricing

Is your fixed energy tariff ending? Learn essential steps to manage energy costs, avoid expenses, and secure the best new tariff for your business efficiently.

Overview

Understand the importance and benefits of fixed energy tariffs for budgeting and financial planning.
Review and compare new tariff options before your current contract ends to avoid unnecessary expenses.
Assess your energy consumption to choose a suitable new tariff and negotiate with your current supplier for better rates.
Plan a smooth transition and stay informed about market trends to manage your energy costs effectively.

Energy costs are a significant part of any business’s overhead, and managing these expenses effectively is crucial.

If you find yourself in the position where your fixed energy tariff is ending, you might be wondering what steps to take next.

This blog post will guide you through the essential actions to ensure your business continues to manage energy costs efficiently and avoids any unnecessary expenses.

Understanding Fixed Energy Tariffs

What is a fixed energy tariff?

Simply put, a fixed energy tariff is an agreement between your business and your energy supplier that locks in the price you pay for energy for a specified period, usually ranging from one to three years.

This means that no matter how much the market prices fluctuate, your energy rates remain constant.

Why Fixed Energy Tariffs Matter

Fixed tariffs offer predictability, which is invaluable for budgeting and financial planning.

They protect your business from sudden spikes in energy prices, providing a stable cost structure that makes it easier to manage your finances.

"Start comparing new tariff options at least a few months before your current contract ends. Look at several fixed tariff options to understand which offers the best value for your business. Consider consulting with energy brokers who can provide insights into the best deals available."

My Fixed Energy Tariff is Ending: What Should I Do?

If you are on a fixed energy tariff and your contract is about to end, what you do next can significantly impact your energy costs.

Here’s a step-by-step guide to help you navigate this transition smoothly:

Review Your Current Contract
Before your fixed energy contract ends, review the terms and conditions. Understand the exact end date and any notice periods required for switching suppliers. This will help you avoid any penalties or fees for early termination or late renewals.
Compare New Tariff Options
Start comparing new tariff options at least a few months before your current contract ends. Look at several fixed tariff options to understand which offers the best value for your business. Consider consulting with energy brokers who can provide insights into the best deals available.
Assess Your Energy Consumption
Analyse your energy consumption patterns. If your business has grown or your operations have changed, your energy needs may have increased or decreased. This assessment will help you choose a tariff that matches your current usage.This may also prevent additional charges from being applied if your new contract includes a volume tolerance threshold.
Negotiate with Your Current Supplier
Don’t hesitate to negotiate with your current supplier. They may offer you a better deal to retain your business. Use the quotes from other suppliers as leverage to get a competitive rate.
Consider Long-Term Needs
Think about your business’s long-term needs. If you expect energy prices to rise, a longer fixed-term contract might be advantageous. However, if you anticipate changes in your energy usage or industry prices, a shorter-term or a variable tariff might be more suitable.
Plan for a Smooth Transition
Ensure a smooth transition by confirming the end date of your current contract and the start date of the new one. This will prevent the possibility of being moved to a more expensive standard variable rate automatically.
Stay Informed About Market Trends
Keep an eye on energy market trends and government policies that might affect energy prices. Staying informed will help you make better decisions regarding your energy contracts.

When your fixed energy tariff is ending, taking proactive steps is essential to maintain control over your energy costs.

By reviewing your current contract, comparing new options, assessing your consumption, negotiating with suppliers and planning for the future, you can ensure that your business remains energy-efficient and cost-effective.

Remember, the goal is to find a tariff that provides the best balance of cost stability and flexibility for your business’s unique needs.

By following these steps, you can navigate the end of your fixed energy tariff with confidence and continue to manage your energy expenses effectively.

How EIC Partnership Can Help

Navigating energy tariffs can be complex, and EIC Partnership is here to simplify the process for UK businesses.

As a leading energy and utility consultancy, EIC Partnership offers expert advice and comprehensive services to ensure your business secures the best energy deals.

We can help you find the most competitive tariffs, by leveraging our extensive supplier network. Afterwards, we handle contract renewals and negotiations, ensuring you always have favourable terms.

We will also carry out extensive energy consumption analysis—detailed insights into your energy usage to help you make informed decisions and identify savings opportunities.

Moreover, our expert team monitors the market continuously and keeps you updated ahead of industry changes.

EIC Partnership tailors its services to your business’s unique needs, whether you’re a small business or a large enterprise. Our expertise allows you to focus on your core operations while we manage your energy needs efficiently.

Partner with EIC Partnership to ensure a smooth transition when your fixed energy tariff ends and secure the best energy options for your business.

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FAQs

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Fixed vs. Flexible Energy Contracts: Which is the Better Deal for You?

tamzidur aurnab — Tue, 16 Apr 2024 14:44:02 +0000

Fixed vs. Flexible Energy Contracts: Which is the Better Deal for You?

April 16, 2024

Explore the differences between fixed and flexible energy contracts to determine which option best suits your business.

Rachael Thatcher

Head of Fixed Pricing

John Palmer

Director of Flexible Procurement

Overview

Choose fixed or flexible energy contracts based on your business needs and financial strategies.
Fixed contracts provide price stability and ease of budgeting, protecting businesses from market volatility with set rates for a specified term.
Flexible contracts, on the other hand, offer potential cost savings and adaptability to market conditions, but require active management and market knowledge.
The decision between fixed and flexible contracts depends on a business's risk tolerance and financial strategy; consulting an energy expert to navigate the complexities of energy procurement is recommended.

Navigating the complexities of energy contracts can be daunting for any business.

In the UK, the decision between fixed and flexible energy contracts is a significant one, impacting everything from budgeting to operational strategy.

It’s crucial to remember that every business is unique, with distinct energy needs and financial considerations.

Thus, there is no one-size-fits-all answer when it comes to choosing the right type of energy contract.

In this blog post, we’ll explore both fixed and flexible energy contracts to help you understand which might be the better deal for your specific business situation.

What is a Fixed Energy Tariff?

A fixed and fully delivered energy tariff involves paying a set rate for your energy use over a predetermined period, typically ranging from one to three years.

The rate does not change regardless of fluctuations in the market prices of energy.

This type of contract offers predictability in energy costs, making it easier for businesses to budget and plan financially without worrying about market volatility affecting energy costs within the agreed contract term.

Fixed energy contracts may be particularly appealing during periods of rising energy prices, as they can protect businesses from unexpected increases by locking in lower prices.

Pros of Fixed and Fully delivered Energy Contracts

Budget Certainty: Fixed rates mean no surprises on your energy bills, regardless of market fluctuations.
Simplicity: These contracts are straightforward and easy to manage.

Good to know about Fixed Energy Contracts

While a fixed energy contract offers budget certainty, there is a lack of flexibility. This means while you will not be affected by energy price hikes, you will not benefit from any price drops in the energy market throughout the course of the contract.

What is a Variable Energy Tariff?

A variable energy tariff allows businesses to pay for their energy at a rate that can change based on market conditions and your risk management strategy.

Market prices can fluctuate due to a variety of factors like supply and demand dynamics, geopolitical events and changes in regulations.

Flexible energy contracts are more complex but offer the potential for significant savings, particularly if energy managers are adept at buying energy at lower prices when the market dips.

This type of contract can lead to lower costs during periods of reduced wholesale energy prices but can also pose a risk of higher rates when energy prices increase if positions are left open.

Pros of Flexible Energy Contracts

Potential for Lower Costs: If managed well, you can capitalise on lower market prices.
Flexibility: Offers the ability to adjust buying strategies in response to market conditions and business requirements.
Multiple Purchasing Decisions: Unlike a fixed contract, a flexible contract allows you to purchase your energy through multiple trades at different times, rather than having to take a decision on a single day.

Good to know about Flexible Energy Contracts

Although flexible energy contracts offer significant flexibility, there is also exposure to market highs and lows can lead to budget uncertainty. However, risk management measures can be used to quantify and limit these risks.
Due to the complex nature of a flexible energy contract, it requires more active management and understanding of the market. An experienced account manager can help with this.
Typically only available for larger customers with annual consumption over a certain threshold.

Which is Better: Fixed or Variable Energy Rate?

Deciding between a fixed and variable energy rate depends largely on your business’s risk tolerance and financial strategy.

Fixed energy tariffs provide peace of mind for the contract period and simplicity, making them ideal for businesses with tight budget constraints or those that prefer predictable costs for easier accounting and forecasting.

Flexible energy contracts might suit organisations that are comfortable with managing some level of risk with the aim of improving their price against the starting position.

This may involve setting limits on risk to avoid price spikes, but offers the opportunity to buy and sell energy to take advantage of prevailing market conditions.

Flexible contracts also allow for long term management of energy costs.

Beginning to trade energy for future positions allows a risk strategy to be set well in advance of delivery and offers the opportunity to optimise the position over time.

Considerations for Fixed and Flexible Energy Procurement

Risk Appetite: If your business has appetite for risk and requires a high level of budget certainty, a fixed tariff may be the better option. Conversely, if you can handle some level of risk for the chance of lower energy bills, a variable tariff might be suitable.
Financial Planning: Consider how crucial predictable energy costs are to your budgeting and financial planning. Fixed tariffs facilitate easier price forecasting, although with suitable support from your account manager flexible contracts will also allow accurate budgeting within agreed risk parameters.
Market Knowledge: Flexible contracts require a good understanding of energy markets and the factors that influence pricing. If your business has access to expert advice or can dedicate time to energy management, this could influence your decision.

In the UK energy market, both fixed and flexible energy contracts have their merits, and the best choice depends on your specific business needs and circumstances.

Remember, one type of contract is not necessarily better than the other; it’s about what works best for your unique business situation.

The key is to understand your procurement options and select the right one for you based on your circumstances at the time the contract is secured. This may change over time.

Always consider consulting with an energy expert or broker to help guide you through the complexities of energy contracts and ensure you choose the best option for your business.

In the end, whether you opt for fixed or flexible energy procurement, the goal is the same: to manage your energy costs effectively and sustainably, supporting your business’s growth and stability in an ever-changing economic landscape.

How EIC Partnership can help you

EIC Partnership is dedicated to guiding you in selecting the energy contract that best aligns with your business needs.

No matter the type of contract you choose, rest assured that your account will receive the full benefit of our expert management.

Our highly experienced team will ensure you are well-supported, and with timely market intelligence reports, you will be equipped to make well-informed decisions that propel your business forward.

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FAQs

See a selection of our most frequently asked questions.

Which suppliers does EIC work with?

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What happens after the energy procurement step?

When is the best time to renew my energy contract?

From Assessment to Certification: The Journey of an Energy Performance Certificate (EPC)

tamzidur aurnab — Fri, 05 Apr 2024 09:10:48 +0000

From Assessment to Certification: The Journey of an Energy Performance Certificate (EPC)

April 5, 2024

Leon Cheng

Director of Sustainability

Overview

Energy Performance Certificates (EPCs) are mandatory for all UK buildings post-2008 that are constructed, sold or leased.
EPCs benefit homeowners by potentially increasing property value and offering insights into energy cost savings, help tenants understand a property's energy costs, and are crucial for landlords to legally rent properties.
EPCs are valid for ten years, though significant property modifications may necessitate a new assessment.
Obtaining an EPC requires a structured process involving site survey and assessment by an accredited energy assessor.

In the landscape of UK property management and ownership, getting an Energy Performance Certificate (EPC) is both pivotal and prevalent.

Any building in the UK erected, sold or leased post-2008 is legally required to have an EPC.

An EPC provides a comprehensive insight into the energy performance of buildings, detailing their energy efficiency and carbon emissions.

Understanding the essence, acquisition process, and validity of an EPC is crucial for homeowners, landlords and tenants alike.

This blog post offers a thorough exploration of Energy Performance Certificates, guiding you through their importance, how to obtain one and their duration of validity.

What is an EPC?

An Energy Performance Certificate (EPC) is a document that assesses the energy efficiency of a property on a scale from A (most efficient) to G (least efficient).

It is a crucial element under the Energy Performance of Buildings Regulations, designed to reduce carbon emissions and enhance the energy efficiency of buildings.

An EPC is always accompanied by a Recommendation Report (RR).

While the EPC itself illustrates the current energy efficiency rating, the RR suggests measures to improve it, potentially lowering energy costs and impacting environmental conservation positively.

From April 2018 onwards, it has become illegal for landlords to rent out commercial spaces that fall into the lowest efficiency categories, F or G, without a legitimate exemption.

The Significance of an EPC

EPCs are not just obligatory formalities; they hold significant value for various stakeholders:

Homeowners can identify how to enhance their property’s energy efficiency, reducing the property’s carbon footprint, possibly increasing its market value and gaining access to better mortgage deals.
Prospective buyers or tenants gain insight into a property’s energy costs, influencing their buying or renting decisions.
Landlords require a valid EPC to legally rent out their property, ensuring it meets specific energy efficiency standards. Moreover, with higher EPC rating, landlords can reduce the risk of tenant turnover due to lower energy costs for tenants and the property may be more attractive to renters due to potential energy cost savings.

How Long is an Energy Performance Certificate Valid For?

An EPC is valid for ten years from the date of issuance.

This duration applies universally across the UK, providing a substantial window for property owners to make energy efficiency improvements before a re-assessment is necessary.

It’s important to note, however, that if significant alterations are made to the property, a new EPC may be required to accurately reflect its updated energy performance.

How to Get an Energy Performance Certificate

Only an accredited energy assessor can conduct the evaluation necessary to issue an EPC.

The assessor visits the property to evaluate key items such as loft insulation, the boiler and double glazing.

Based on the assessment, the EPC is issued, detailing the energy efficiency rating and recommendations for improvement.

Our comprehensive EPC services unfolds through a meticulously structured five-step approach:

Site Survey: Our dedicated team of accredited energy assessors embarks on detailed site evaluations to capture critical data.
3D Modelling: This essential data is then skilfully crafted into a 3D model, enabling accurate analysis.
EPC and Recommendation Report Generation: We craft both the EPC and a tailored RR Leveraging the insights from the 3D model.
Official Lodging: Our team manages the formal submission of these documents to the Landmark-operated Government database, affirming compliance.
Certificate Delivery: You receive the finalised EPC and RR in your preferred format, accompanied by our unwavering support for any additional requirements.

Renewal and Compliance

While an EPC is valid for a decade, the evolving nature of energy efficiency standards means that staying informed on current regulations is beneficial.

For landlords, specifically, ensuring your property meets the minimum energy efficiency standard (currently set at an E rating) is imperative to remain compliant with the Energy Performance of Buildings Regulations.

How EIC can Help You

The journey from assessing a property for its energy performance to obtaining an Energy Performance Certificate is a critical path for UK property owners, landlords and tenants.

Our team of energy specialists streamlines the acquisition of an Energy Performance Certificate (EPC), adding exceptional value to your experience.

Here’s how EIC helps you:

Streamlined Process: We’ll navigate you through every step, ensuring a smooth and stress-free experience.
Focus on Your Business: By handling the EPC specifics, we free up your valuable time to focus on what matters most – running your business.
Compliance Confidence: Rest assured that your EPC is in capable hands. We ensure your property meets all current regulations.
Stay Informed: We keep you updated on any changes in energy efficiency legislation, so you’re always ahead of the curve.
Boost Your Efficiency: Our team goes beyond the EPC. We offer expert advice to help you improve your building’s energy performance and potentially save on bills.

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FAQs

See a selection of our most frequently asked questions.

Which suppliers does EIC work with?

What if I am already with an energy consultancy?

What happens after the energy procurement step?

When is the best time to renew my energy contract?

How Schools Can Save on Energy Costs

tamzidur aurnab — Thu, 28 Mar 2024 12:55:50 +0000

How Schools Can Save on Energy Costs

March 28, 2024

Matthew Gray

Head of Fixed Market Analysis & Energy Solutions

Overview

Schools can lower costs by securing competitive energy rates and choosing effective contracts with thorough market research.
Savings come from conducting energy audits, adopting efficient practices and technologies, improving insulation, and using renewable energy.
Financial support is available through initiatives like the grants for efficiency upgrades and EV charger installations.
EIC provides tailored solutions for schools to navigate energy markets, secure grants and implement cost-saving strategies.

In the current economic climate, controlling operational costs is crucial for educational institutions.

Among these costs, energy expenditure stands out due to its volatility and significant impact on overall budgets.

This post outlines a strategic approach to energy procurement for schools and provides practical advice on how to save energy, thereby reducing expenses.

Understanding Energy Procurement for Schools

Energy procurement is a critical process that involves the acquisition of electricity, gas and other fuels at optimal prices.

For schools, which are under constant pressure to manage budgets effectively, securing energy at competitive rates is essential.

The challenge lies in navigating a market that is inherently unstable, with prices fluctuating due to various global factors such as economic conditions, geopolitical tensions and supply chain disruptions.

Strategies for Cost-effective Energy Procurement

The first step in energy procurement for schools is to engage in thorough market research to understand the current energy landscape.

This involves comparing rates from different suppliers, evaluating contract terms and considering the potential benefits of renewable energy sources.

By doing so, schools can identify the best procurement strategy and subsequent energy contract.

How to Save Energy in Schools

Beyond procurement, significant savings can be achieved through focused efforts to reduce energy consumption.

Here are a few key strategies to implement to make energy use more efficient in schools:

Conduct an Energy Audit: Identify where and how energy is used within the school. This assessment can reveal inefficiencies and areas where improvements can be made.
Implement Energy-efficient Practices: Encourage behaviours that contribute to energy savings, such as turning off lights and electronic devices when not in use, and maximising natural light.
Upgrade to Energy-efficient Technologies: Invest in energy-efficient lighting, such as LED bulbs, and consider upgrading heating, ventilation and air conditioning (HVAC) systems to more efficient models.
Improve Building Insulation: Enhancing the insulation of buildings can reduce the need for heating and cooling, leading to substantial energy savings.
Utilise Renewable Energy: Explore the possibility of installing solar panels or other renewable energy sources to reduce reliance on traditional energy sources and lower costs in the long term.

Government Support for Schools

Recognising the challenges faced by educational institutions in managing energy costs, government initiatives such as the Energy Bill Relief Scheme, which ends in April 2024, offer financial support to schools.

Additionally, grants for energy efficiency upgrades can provide schools with the necessary funds to implement cost-saving measures.

On average, it’s estimated that primary schools will receive around £16,000, while secondary schools can expect to receive about £42,000.

Furthermore, state-funded education institutions can secure grants for EV charger installation covering up to 75% of costs. Read more about this grant.

How EIC Partnership Can Help

Effective energy procurement for schools, coupled with strategic actions to save energy, can lead to significant cost reductions.

Our energy procurement solutions are designed to guide businesses and organisations including schools through unpredictable market conditions and help manage their risks.

Tailored to the specific needs of each organisation, our services aim to provide stable budgeting and cost savings.

Furthermore, we offer a variety of services that can help schools cut down energy costs significantly, from securing government grants to ensuring that utilities are being used in the most efficient way possible.

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Prepare for Increase to Fixed DUoS Charges in April 2024

tamzidur aurnab — Mon, 25 Mar 2024 13:41:04 +0000

Prepare for increase to fixed DUoS charges in April 2024

March 25, 2024

Ashley Game

Insight Analyst

Overview

DUoS charges will increase in April 2024 due to high inflation in previous years but are expected to decrease slightly in April 2025 as inflation falls.
Ofgem determines revenue for Distribution Network Operators (DNOs), who set DUoS tariffs 15 months in advance, leading to adjustments based on inflation and allowed revenue.
A correction factor has been applied to the 2024/25 tariffs to compensate for under-recovery in 2023/24, resulting in a significant increase in fixed DUoS charges.
From April 2025, changes in regulatory reviews and adjustments will lead to an increase in capacity and unit charges, offsetting the decrease in fixed charges.

Distribution Use of System (DUoS) charges are set to increase for most consumers in April 2024 following the large rise in inflation over the last three years.

However, as inflation has fallen in recent months, DUoS charges will decrease slightly in April 2025 in most areas.

The majority of the April 2024 increase will be seen as a rise in fixed DUoS charges.

Whereas, the drop in DUoS charges in April 2025 will be made up of a significant decrease in fixed charges, partially offset by an increase in capacity and unit charges.

Role of DNOs and Ofgem in Setting DUoS Tariffs

The amount of revenue Distribution Network Operators (DNOs) are allowed to collect is determined by Ofgem.

DNOs are required to set their DUoS tariffs 15 months in advance based on this allowed revenue.

The DUoS tariffs for 2023/24 were set in December 2021 when the rate of inflation was at 4.8%.

However, inflation increased rapidly over the next twelve months and had reached 9.2% by the time the 2024/25 tariffs were set in December 2022.

As a result, the amount of allowed revenue for the 2024/25 DUoS year has increased compared to 2023/24, which can be seen in the graph below.

Impact of Inflation and Correction Factors on DUoS Charges

Additionally, the amount of revenue collected by DNOs through DUoS charges in 2023/24 was significantly lower than the allowed revenue once inflation had been included.

To account for this, Ofgem allows DNOs to apply a correction factor to compensate for any over and under-recovery in the previous year.

As all DNOs under-recovered in 2023/24, a large correction factor has been added to 2024/25 tariffs, which has resulted in a large increase in fixed DUoS charges from April 2024.

Future Trends in DUoS Charges and Regulatory Adjustments

The rate of inflation fell throughout 2023 and had dropped to 4.2% by the time the 2025/26 tariffs were set in December 2023.

Most DNOs are now forecast to over-recover in 2024/25 due to the drop in inflation so negative correction factors have been applied and allowed revenue has fallen.

There was also a reduction in tax last year after 2024/25 prices had been set.

The effect of this on 2023/24 and 2024/25 allowed revenue has been reflected in 2025/26 allowed revenue.

As a result, fixed DUoS charges are set to decrease significantly in April 2025.

Analysis of DUoS Tariffs and Consumer Impact

The graph below shows that DUoS tariffs in most DNO areas are set to increase by an average of 30-40% in 2024/25.

In contrast, DUoS tariffs will decrease by an average of 15-20% in 2025/26 in most areas.

There are some exceptions to this, most notably Manweb and North West, whose tariffs increase by less than 20% in 2024/25.

As a result, both DNO areas are set to under-recover again over this period, which explains the slight increase in tariffs in 2025/26.

On the other hand, Southern has the largest increase in tariffs in 2024/25 at nearly 70% and is therefore projected to have the largest over-recovery.

This is reflected in 2025/26, where Southern DUoS tariffs fall by an average of 40%.

Impact of Access and Forward-Looking Charges Review

There will be an increase in forward looking charges in 2025/26 mainly caused by DNOs setting the customer contributions input to zero in the Common Distribution Charging Methodology (CDCM).

This was done as a result of the Access and Forward-Looking Charges Significant Code Review (Access SCR), which was launched by Ofgem to ensure that electricity networks are used efficiently and flexibly.

This will see capacity and unit charges increase from April 2025, partially offsetting the drop in fixed charges.

Forecast for April 2026 and Beyond

Initial analysis suggests there will be no significant changes in April 2026 as collected revenue is forecast to match allowed revenue.

However, this could change if another large fluctuation in inflation affects allowed revenue or a significant change in consumer demand alters collected revenue.

EIC Partnership's Role in Helping Businesses Prepare for Energy Costs

EIC Partnership can help you accurately budget and forecast your energy prices with confidence with our Long-Term Forecast Report (LTFR).

The LTFR is a valuable tool which illustrates the annual projected changes to your energy bills and calculates your energy spend over the next 5, 10, 15 or 20 years.

This allows you to confidently forward budget and avoid any nasty surprises.

Whilst we can’t prevent the rise of non-commodity charges, we can ensure you are fully prepared for the increases.

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How EIC Saved £100M for Clients with Flexible Energy Strategy

tamzidur aurnab — Fri, 15 Mar 2024 14:30:12 +0000

How EIC Saved £100M for Clients with Flexible Energy Strategy

March 15, 2024

William Oliver

Head of Business Development Sales

Overview

EIC Partnership has saved over £100m for clients through flexible energy procurement and budget protection strategies over the past decade.
Their approach adapts to market changes, offering customised trading policies that align with individual business goals and risk preferences.
Continuous market monitoring and risk management protect client budgets and maximise savings opportunities.
Now is considered an optimal time to secure a flexible energy contract due to recent softening of energy prices.

In the UK, managing business energy costs efficiently can be as crucial as finding new avenues for revenue.

Over the past decade, EIC Partnership has delivered savings of over £100m to clients who chose budget protection trading strategies.

These achieved savings are in respect to baseline costs – not savings versus the budget and they prove that significant savings can be made whilst having a conservative trading strategy and protecting a budget.

Understanding Flexible Energy Procurement

Flexible energy procurement allows businesses to more effectively control costs and manage the price risk of buying from a volatile energy market.

In contrast to traditional fixed supply contracts, a flexible approach provides options so you can proficiently manage market exposure to avoid rising costs and take advantage of favourable market movements.

A flexible procurement strategy allows businesses to be more proactive, reactive and adaptive to steer costs in alignment with their goals and needs, thereby, securing better value.

This approach requires a keen eye on market trends, a deep understanding of risk management and the agility to make timely decisions.

EIC’s robust systems and expertise provides a comprehensive solution so our customers’ energy procurement experience is better and easier.

Budget Protection: The Strategy behind the Savings

EIC Partnership has a proven history of effectively safeguarding budgets against unpredictable market changes.

Our approach has stood strong during major events like the financial crisis, the Fukushima nuclear incident and recent energy market upheavals, helping our customers save money while keeping their budgets intact.

Our budget protection strategies work by continually monitoring market prices and your level of exposure to monetise the price risk relative to the agreed budget.

We stress test all customers’ positions every 10 minutes in line with agreed metrics set out within the agreed trading policies to ensure budget costs are protected.

We establish baseline costs based on prevailing market prices and then add an amount of your choosing on top to define the budgets.

Usually the procurement strategy is mainly about managing exposure. You want to be exposed to the market when prices are falling and not exposed when prices are rising.

The complication comes in the fact that the market is volatile and no one can know for certain what will happen next.

With our budget protection strategies, because the budget (worst case) costs are clearly defined and our systems are constantly monitoring the market movements and calculating risk we can begin trading straight away and continue right up to the point of delivery.

This maximises opportunities for best results whilst still providing our customers with clarity and peace of mind.

Tailoring Strategies for Individual Success

While our budget protection strategy works really well, at EIC Partnership we understand that every client has different needs and levels of comfort with risk.

That’s why we don’t use a one-size-fits-all approach. Instead, we carefully create Risk Managed Trading Policies for each client, making sure they fit their unique goals and requirements.

These trading policies are important in ensuring clarity and accountability to the agreed strategy.

Additionally, our customer portal provides trading performance on demand and the dedicated Account Managers ensure our customers are fully informed and supported at all times.

To maximise flexibility the agreed trading strategies can be changed at any time at the request of our customers.

This means we can adjust your plan as things change, whether it’s because the market shifts or your business needs evolve.

This way, we can keep your strategy up to date and working well for you, ensuring you get the best results tailored to your situation.

This bespoke approach maximises the benefits of flexible energy procurement for every client, aligning their energy strategy with their overall business goals.

Why Now Is the Optimal Time to Secure a Flexible Energy Contract

Price of Electricity from February 2023 to February 2024

Price of Gas from January 2023 to March 2024

Securing a flexible contract provides the framework to execute a trading strategy.

The sooner you have a trading strategy the sooner costs can be effectively controlled. Securing a contract takes time so reacting to rising prices to protect costs is ineffective.

Prices have softened as can be seen on the price charts above, reaching 2021 lows, not far above the long-term price ranges seen prior to the energy crisis.

Hopefully prices will continue to soften but to manage the price risk and ensure the current value is not lost, procurement options should be considered now

With a budget protection strategy we can set and protect budgets based on the current market prices and still have the ability to take advantage of further market falls.

£100m Savings Locked in Over 10 Years

The £100 million saved for clients by EIC Partnership over the last decade is not just a milestone but a clear indicator of the power of strategic flexible energy procurement.

Does your current procurement strategy deliver everything you need?

If you would like to discuss potential procurement solutions – how they would work and how they could help you, then please click here and we’ll be in touch.

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EV Charger funding for UK Schools

tamzidur aurnab — Fri, 01 Mar 2024 10:06:06 +0000

EV Charger funding for UK Schools

March 1, 2024

Matthew Gray

Head of Procurement

The UK Government is providing schools with grants for EV chargers, covering as much as 75% of the installation expenses.

Overview

The UK Government has unveiled a significant grant initiative to facilitate the installation of electric vehicle (EV) charging points at state-funded schools and educational institutions across England, Wales, Scotland and Northern Ireland.

This initiative marks a pivotal step in the government’s comprehensive Plan for Drivers to transition from traditional fuel vehicles to electric alternatives.

The EV Charger Installation Grant's Offerings

The grant offers a compelling incentive, covering up to 75% of the costs associated with purchasing and installing EV chargepoint sockets.

Eligible institutions can install up to 40 sockets, each costing a maximum of £2500, across all their sites; this includes any applications previously made through the Workplace Charging Scheme.

Successful applicants will be awarded a voucher, which remains valid for 180 days, requiring the installation to be completed within this timeframe.

Eligibility and Requirements

Eligibility for this grant extends to state-funded schools and educational institutions, with independent schools directed towards the Workplace Charging Scheme for funding.

A crucial criterion is the presence of designated off-street parking facilities linked to the institution, alongside a demonstrated current or future need for EV charging.

Additionally, a site survey by an approved installer is necessary to confirm the feasibility of supporting EV charging infrastructure.

Applicants must also ensure they have not received similar funding for the chargepoint under any other grant scheme and adhere to the financial assistance threshold set by the government.

Other funds for EV Charger Installations

Alongside the grant for schools, the Department for Transport (DfT) is distributing funds via the Local Electric Vehicle Infrastructure (LEVI) Fund to assist local authorities nationwide.

The purpose of the LEVI Fund is to improve charging infrastructure projects, having sanctioned capital disbursements exceeding £14.2 million for regions extending from East Sussex to North Yorkshire, including two boroughs in London.

Technology and Decarbonisation Minister Anthony Browne emphasised the government’s dedication to a smooth transition to EVs, with over £2 billion already invested towards achieving net zero in a manner that minimises the impact on working individuals.

This initiative reflects the government’s commitment to bolstering the UK’s EV infrastructure, making electric vehicles a viable and attractive option for more people.

How EIC Partnership Can Assist

By partnering with Stark, EIC delivers unmatched comprehensive solutions that cover hardware, software, operations, maintenance and data services, all integrated seamlessly under one umbrella.

No matter if you’re initiating or scaling up your EV venture, we simplify the process to meet your needs seamlessly.

Our team of experts is equipped to handle every aspect of the installation process, from initial site surveys to the final setup, ensuring compliance with all grant requirements.

We understand the significance of this transition for schools and are committed to providing seamless, efficient, and cost-effective installations.

By choosing EIC Partnership, schools can leverage this grant opportunity to enhance their infrastructure, contribute to the UK’s environmental goals, and prepare their communities for a sustainable future.

Our expertise and dedication make us the ideal partner for institutions looking to navigate the complexities of EV charger installation and maximise the benefits offered by the UK Government’s grant.

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Energy Intensive Industry (EII) Support Levy

tamzidur aurnab — Fri, 16 Feb 2024 11:34:47 +0000

Energy Intensive Industry (EII) Support Levy

February 16, 2024

Ashley Game

Insight Analyst

Overview

The British Industry Supercharger (BIS) aims to boost the competitiveness of UK's Energy Intensive Industries by exempting them from specific energy costs, affecting around 300 companies and 400,000 workers.
Key measures include a full exemption from the Renewable Levy and GB Capacity Market costs for EIIs, and a new scheme for compensating network charges, aimed at lowering their electricity costs.
Starting April 2024, EIIs will get 100% exemption from energy charges and, from April 2025, compensation for 60% of their network costs, resulting in significant electricity bill reductions.
The cost of these benefits to EIIs will be covered by a new levy on non-EIIs, slightly increasing energy costs for households and non-domestic consumers to fund the compensation scheme.

In February 2023, the UK government announced the British Industry Supercharger (BIS) with the intention of making Britain’s energy intensive industries (EII) more competitive across Europe. The BIS is set to benefit around 300 companies, employing 400,000 skilled workers in vital sectors including steel, metals, chemicals and paper.

The BIS is comprised of 3 measures which will together address the areas of the domestic energy system which currently contribute to higher electricity costs for EIIs than comparable countries. This includes an increase in the subsidy under the existing EII Renewable Levy Exemption scheme from 85% to 100%, a new full exemption from the indirect costs associated with the GB Capacity Market, and a proposed EII compensation scheme for network charges.

In October 2023, the Department for Business and Trade (DBT) published the outcome of its consultation on a Network Charging Compensation (NCC) scheme and Energy Intensive Industries (EII) Support Levy (ESL). They confirmed that the NCC scheme will allow EIIs to claim back 60% of TNUoS, DUoS and BSUoS costs from government which will be funded by a new levy (ESL) on other end users.

What this means for Energy Intensive Industries

Previously, EIIs received 85% exemption from Renewable Obligation (RO), Feed-in Tariff (FiT) and Contracts for Difference (CfD) charges. From April 2024, EIIs will receive 100% exemption from RO, FiT, CfD and Capacity Market (CM) charges.

Subject to getting the necessary legislation in place, the NCC and ESL will launch in April 2025 with support for EIIs backdated to April 2024. This will see EIIs compensated for 60% of their network costs, which includes Balancing Services Use of System (BSUoS), Transmission Network Use of System (TNUoS) and Distribution Network Use of System (DUoS).

The government has modelled that the provision of compensation on 60% of network costs would equate to an average saving of £14/MWh off electricity bills. This is in excess of the £10/MWh in relief that the policy was intending to offer when it was initially developed and modelled.

The government’s view is that the 60% compensation offered will ensure that eligible EIIs will receive an average electricity price reduction of £24-31/MWh once all the measures in the Supercharger are implemented. This level of reduction will bring industrial electricity prices down to an internationally competitive level.

What this means for non-EIIs

With EIIs being exempt from contributing towards all renewable levy costs and some network costs, all other users will see an increase to the £/MWh rate they are charged. This compensation will be paid through funds raised from the new EII Support Levy. This levy will be charged to suppliers based on volumetric market share, so it will be included in the unit rate in customer offers.

The government has estimated that providing 60% compensation on network costs would ensure that the redistribution of costs of the British Industry Supercharger would not exceed £3 to £5 annually for household consumers and £1/MWh for non-domestic consumers.

Based on internal modelling, the government estimates that it will need to raise between £190 million to £260 million per annum or £16 million to £22 million per month in order to compensate EIIs for 60% of their network charging costs. When divided across all non-EII demand, this represents an increase of £0.8-1.1/MWh on bills.

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FAQs

See a selection of our most frequently asked questions.

Which suppliers does EIC work with?

What if I am already with an energy consultancy?

What happens after the energy procurement step?

When is the best time to renew my energy contract?

EIC Partnership

The Business Benefits of Smart Energy Procurement

The Business Benefits of Smart Energy Procurement

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Risk Management in Business Energy Procurement

The Importance of Intelligent Procurement in Today’s Energy Landscape

Navigating Complex Markets with Energy Procurement Services

Leveraging Technology for Energy Management for Businesses

Supporting Renewable Energy Goals Through Sustainable Solutions

How EIC Partnership Can Benefit Your Business

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