14
June
2022
With the cost of living crisis having a very large impact on energy bills, a lot of golf clubs will be looking at their procurement and talking to brokers in order to make sure they are getting the best deals possible. James Sampson, of GCMA associate partners Inspired Energy, provides best practice advice on how clubs can manage their situation and what potential ways forward are available... There are many areas for a business to consider when looking inward at their energy situation, such as gaining an overview of what’s going on in the market, seeking out strategies they can employ as they look at their supply and agree new contracts, finding ways to use energy better, discovering how they can use low-carbon and sustainable technologies going forward and ultimately finding an energy partner who can support them throughout the whole process. Current state of the market Energy procurement has been fraught with risk over the past couple of years, and 2022 is proving much the same. Gas and electricity prices reached all-time highs in 2021 and this has continued into 2022. The current market conditions have been caused by limited European gas supply, surging regional emissions markets, and an increase in energy demand in the wake of the COVID-19 pandemic. More uncertainty is expected with price fluctuations leading to a more frequent and intense ‘peak and recover’ cycle. On-top of this, there are changes to the non-commodity (third-party) element of energy bills with the Targeted Charging Review (TCR) and Green Gas Levy to consider. When is the right time to buy? So, with all these different energy procurement challenges at play, how can businesses ensure they’re buying at the right time and getting the best price possible? The crucial thing to consider with energy procurement is timing and getting it wrong can be very costly. For those on a fixed contract up for renewal it can be tempting to hold out whilst prices are high, but it may be better to have a contract in place to avoid falling into ‘out of contract’ rates. Those with a flexible contract with probably be seeing considerable increases to their energy bill. This is where it can be helpful to spread out the market uncertainty risk in order to enable you to limit budgetary risk whilst taking advantage of lower energy costs when the market drops. It’s a crucial time for any decision making as the cost of fixing at the wrong time could cost your business thousands. It’s always best to speak to an expert to access the right advice and strategy for your business. Using energy better With energy prices on the rise reducing your energy consumption is something that’s on everyone’s radar. Particularly with the UK government setting a more ambitious target of a 78% reduction of emissions by 2035 with the aim of being completely net zero by 2050. Here are a few ways you can reduce your business’ energy consumption and spend... On-site energy efficiencies Increasing your business’ on-site energy efficiency... Please LOGIN to read the full article.
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