- Act now and save more on your energy bills
By Peter McMullan
7th Jun 2019
Even if your energy contract isn’t due for renewal just yet, now is the time to purchase your energy and save money before the energy market peaks later in the year. We explain the six reasons why you should be buying your energy now before the October peak.
- Act now to maximise savings
We are currently at a very good market and cost point for Gas and Electricity, however later in the year we do expect to see elevation and increases, so for 2019 renewals, we would advise taking action sooner rather than later, to protect budgets.
- Market prices will increase
Based on 2018’s figures, purchasing your energy in October is likely to be more expensive.
The graphs below show the cost of a 2018 contract (your current contract costs) and a 2019 contract (our future provided quotes), with the two overlapping as Energy is a “futures market”, where you can buy in advance to optimise your delivered costs, which we aim to do for members.
Crude Oil is also shown as a major driver of energy prices and the horizontal window is an optimal purchasing zone, which we are currently very close to. Climate change is affecting the dynamics of the energy markets, with elevation seen in late summer and strong falls seen around now in spring.
Further fluctuations (or potential weakening) of the Sterling combined with political uncertainty is likely to impact energy markets.
- Basket purchasing opportunities available
A ‘basket’ purchasing opportunity is a way of pooling the bulk buying power of a group of buying organisations to get more competitive prices. The earlier your institution can sign up to an ‘October*’ basket, the greater the opportunity to achieve lower energy rates.
*We can accommodate contract dates that are slightly out of alignment with October.
- Free no obligation quotes
It is completely free to obtain a quote from the supplier on CPC’s Utilities Supplies & Services framework, Utilities Procurement Group (UPG). They will provide a like-for-like analysis against current and renewal costs, there is no obligation or pressure to proceed and no future commitment required.
- Derby College achieved amazing results
Due to acting early and renewing their energy contracts that are due to expire at the end of September 2019, Derby College achieved the following using the CPC Utilities framework:
- Savings on gas and electricity of approximately £115,000
- Total contract efficiency of £345,000 over the 3-year contract term
- Review of the supply capacity (KVA) of each building resulted in a £4,000 per annum saving: generating a further total contract efficiency of £12,000 over the 3-year contract term.
Read the full case study here
Members who would like to discuss their energy requirements please contact the dedicated Energy Helpdesk on 03453 020041.