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Apr 28

Serious about saving money? Join the Energy Action Group

Enterprise, Innovation

If you are serious about saving your organisation money, now is the ideal time to join the Locality Energy Action Group.

energy lightbulb

Run in partnership with DTA Wales, the Energy Action Group can advise you on the best energy supplier, the correct tariff for your organisation and can add you to the AIM energy bulk buying basket.

With oil prices at an all-time low and with gas tariffs directly linked to the price of oil, you could make significant savings on your energy costs and with around 47% of UK power generated being by gas, electricity prices have also seen reductions.

Finding the best rates

For 2016, the AIM Energy Action Group approached eight different leading suppliers with the combined buying power of the basket.

Best rates were provided by Dong Energy and SSE with Dong better for some supplies and SSE better for others. Both suppliers offer unrestricted fixed price contracts, avoiding some of the ‘take or pay’ minimums that some suppliers include. In making our recommendation we also noted our members current supply arrangements, preferring to retain existing and familiar billing arrangements unless the cost benefits of a transfer are significant.

Six members made a saving of £11,500

The initial results are very impressive and the first set of contracts issued to six members has saved them approximately £11,500 per annum compared to what they were previously paying plus they gained a 29% reduction form their current contracts for gas.

If I sign now, how long can I/should I sign for?

Members generally go for a mid-length contract of 2, 3 or 4 years. However, under prevailing market conditions many people are choosing to lock for up to 5 years. You would pay slightly more than you would over a shorter term but the longer term means you will have secure, low pricing for an extended period.

You can accept a new offer from a supplier starting anytime up to 2018 and you can then lock prices in up to April 2021.

The three key benefits

The benefits of fixed procurement are evident and include:

  • Price protection – Contract prices are fixed for the contract duration.
  • Budget certainty – Budgets can be predicted and therefore managed.
  • Security – Provides protection from volatility in the energy market.

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