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15 years of experience
15 years of experience
15 years of experience

20 Mar

Why Understanding What P272 Means is Important

by Simon Thompson
 
While it may sound like an obscure piece of business regulation, understanding what P272 means is important for all organisations. That’s because it is a regulation from the energy industry watchdog OFGEM which, in October 2014, stipulated that all organisations with non-half-hourly profile class electricity meters would be migrated to the energy market’s half hourly meters. This means that the difference between the two environments will now be leveled out and, more importantly, will see firms and organisations being able to access cheaper electricity bills since their energy suppliers will be able to define more clearly not only how much energy an organisation is using but also when they are using it. The extra information means the energy supplier could move their customers to lower tariffs so they save money. In addition, they may even encourage an organisation to use electricity when it’s cheaper in off-peak periods to help with energy demand and the firm will then enjoy lower bills as a result. All firms that had a non-half-hour electricity meter Essentially, all firms that had a non-half-hourly electricity meters, known as NHH, will have gone through, or will need to go through, the switch over to a half hourly settlement. The word settlement is used to determine how much electricity an organisation has used over a given period. For those organisations with a meter in the ‘Profile Class 05-08’ – the definition of the meter is on the organisation’s electricity bill and meter itself – will automatically send the actual energy usage for the previous half-hour to the energy supplier. One reason for this is that Ofgem says that organisations will be able to move their electricity demand away from the dearer peak periods and onto the cheaper periods or find a supplier who better meets their needs. This not only helps the energy market but it also helps the National Grid forecast more efficiently when demand for energy will increase. Switchover process for the implementation of P272 The switchover process for the implementation of P272 began in November 2015 so that all of the relevant metering systems in the country will have switched across to the half hourly market by April this year. Obviously, this timescale means that some business sites had to implement the meter switchover much earlier than others did but everyone will need to have the new meters in place by the April deadline. For those firms or organisations that have not been contacted or are unsure whether they are on the correct metering system, then they need to act promptly. The best way of doing this is to contact the experts at D-Energi and they will be able to help answer any questions. More importantly, should the organisation need to switch over then this can be arranged quickly and efficiently by the helpful advisers at D-Energi. One of the main reasons given for organisations not switching energy suppliers is they claim not to have the time to fully research the market for a new supplier – this is where experts in the market come into their own and help firms save time doing so. Electricity meter in the ‘Profile Class 05 to 08’ Indeed, it’s crucial that all businesses now have their electricity meter in the ‘Profile Class 05 to 08’ range so they have switched to a half hourly billing basis. If not, their energy supplier must install a new meter or help with the switch-over by the deadline. The result is that businesses will get more accurate electricity bills which means they should see a fall in their overheads but other organisations may see a rise in their bills. The P272 also encourages firms to introduce energy saving ideas such as switching off electric lights in rooms that are not being occupied and other efficiencies. The team at D-Energi can help Again, the team at D-Energi can help with advice on this subject with ideas that work and will save the company money. By shopping around, the organisation will be able to gain a better energy deal because a potential new supplier will be able to see how much the organisation is using in energy in clear detail and, more importantly, when they are using it. It’s important to appreciate that the new changes only apply to organisations and not to domestic consumers and every business using electricity will be affected. Under the new rules, it simply is not possible for any organisation to remain on their non-half hourly settlement and they will need an advanced meter installed. Another reason for OFGEM to arrange for the P272 switch to half hourly metering is for businesses to appreciate how much they are spending on energy and look to switch suppliers so the idea is to create competition within the industry. With greater competition for company, business means organisations can access lower tariffs more easily and reduce their overheads as a result. For more help and information about understanding P272 and how an organisation can switch energy suppliers or find a better tariff, then contact the experts at D-Energi.
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13 Mar

How to Compare Cheap Business Energy Prices

by Simon Thompson
 
For any organisation wanting to source cheap business energy prices, the market for them may appear to be confusing and time consuming to understand. That’s because there’s a growing number of business energy suppliers offering a variety of deals and tariffs which means careful research will need to be undertaken. However, there are ways to save time and money spent searching for better prices for energy and understanding the potential contracts. That’s to contact experts who deal with the market on a daily basis which will mean contacting D-Energi. There’s no doubt, however, that it will also pay for the organisation to understand the market for business electricity and gas so they will appreciate a good deal for energy when they see it. Indeed, with the vast majority of businesses in the UK having to rely on electricity for their everyday needs means it’s important that they find the best electricity prices available to help keep their overheads under control. Finding a better business energy deal Energy market experts have been predicting that the prices being paid by businesses will begin to rise and many organisations may also believe that this trend will mean finding a better business energy deal than they currently have will become an almost impossible task. That would be a mistake to make and it could be a costly one as well. That is because having the knowledge beforehand and understanding that if they haven’t switched business energy suppliers in recent years probably means they are on a ‘deemed contract’ and are paying more than they need to for their energy needs. By switching to a new supplier, they could potentially save thousands of pounds every year depending on their bills. The other important issue for the organisation to understand is that the business energy market is not like the one for the domestic market; they will need to contact a supplier for their gas and electricity individually and get a quote. One reason for this is that an energy supplier will be looking to meet a customer’s energy needs and will look at their consumption habits to deliver a bespoke business electricity quote. Cheap business electricity quotes These cheap business electricity quotes will deliver flexibility and help meet the consumption habits which will vary through the working day so the business will not be paying more than they need to for electricity, for instance. One of the downsides for this is that there is no established business electricity tariff for an organisation to compare their deal with since most businesses are unlike any other. Firstly, the organisation should find their current tariff and then begin their search for a new supplier. They will need to understand that a fixed rate tariff is a pre-agreed price for units that will last for the contract’s term. Fixed-rate tariffs are usually competitive but is always worthwhile comparing one offer with another supplier’s offering. As mentioned previously, for those organisations on a deemed rate tariff are probably at a disadvantage because a 28-day rolling contract means they have failed to agree new terms with their supplier so they are probably paying over the odds on this basis. Organisations may be on a rolling contract However, some organisations may be on a rolling contract and while these are not competitive and only offered by a few suppliers, they are offering fairer rates than on a deemed contract. The downside is the organisation may be tied into a year-long contract on rates that are higher than the competition is offering. The organisation will also need to pay a unit cost as well as a standing charge which covers the maintenance of the National Grid and the cost of delivering electricity to a business premises. Again, there’s no set tariff for this and to complicate matters the rates being charged will vary between micro and small businesses as well as medium and large businesses. This is a quick checklist to help an organisation decide whether the business electricity quote they receive is suitable: Get business electricity quotes from several suppliers Choose which of their tariffs best suit the business Decide which is the best new supplier and sign their contract inform the current energy supplier of your intention to switch The process is seamless for switching over so simply wait for the new supplier to take effect.   However, there’s just one word of caution when looking for the best electricity quotes and that’s not simply choose the cheapest quote on offer. One reason for this is that while the business will inevitably save money and lower their overheads they may switch to a supplier that does not meet their needs effectively and some suppliers offer more than others. Organisations looking for a cheap business gas energy deal For those organisations looking for a cheap business gas energy deal, then the tips contained above will prove useful. Not every firm has a gas supply but for those who do then it will be worthwhile shopping around for a better and cheaper energy deal. Again, this means approaching several gas suppliers and asking for a quote and they, in turn, will look at the business’s circumstances and assess what their habits are and then deliver a bespoke quote based on this. It’s also probable that with every business being different, means there will be no way to navigate a business gas tariff effectively to see whether they are on a tariff that best suits their needs. Again, there are fixed term contracts and rollover contracts available from business gas energy suppliers and for those who haven’t switched gas supplier then they are probably on a deemed contract where their rates will be, unfortunately, much higher than are on offer to new customers. Business gas suppliers also have a standing charge As with electricity suppliers, business gas suppliers also have a standing charge to pay and their unit cost will be for each unit of gas supplied to the business. For firms looking to switch energy suppliers, the information here details what they need to know and why the easiest and most effective way of finding cheap business energy deals and tariffs is to use the expertise of the D-Energi team to find the best terms available that best meet the organisation’s needs.  
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10 Mar

Understanding P272 For Businesses To Save Money On Energy Costs

by Simon Thompson
 
Undertaking research is sound business practice which also extends to finding the best business electricity rates available but some firms may be unaware of what P272 means for them. Essentially, the P272 is a piece of legislation that is pushing organisations to use half-hourly meters (better known as HH meters) so their usage of energy can be better monitored and charged for. It’s also important for those firms who are looking to find a new energy supplier since if they have a P272 meter than the information is an effective way of accessing lower bills. That’s because a potential new supplier can see immediately when and where the firm is using energy and tailor their offering to meet this – there might also be, for instance, some encouragement for the firm to move to off-peak use for lower rates. Indeed, while many organisations may believe that they are on a good deal, unless they check the market regularly, how will they know? It is worth highlighting research from the Competition and Markets Authority which reveals that around 40% of firms have never switched their energy supplier. Firms are probably paying more for their energy The result of non-action is that a large number of firms are probably paying more for their energy needs than they should be doing. The only way to find the cheapest electricity rates is for an organisation to compare the entire market for all business electricity suppliers. On top of this, they will also need to consider how much electricity they are using for their business needs. There are ways and means of searching the market to find a better supplier and organisations of all shapes and sizes could save substantial amounts of money. One of the best ways of finding what the market rate could be is to check a business comparison website that looks at a range of electricity suppliers delivering to businesses. Also, for those firms who have multisite businesses it also possible to have an account that delivers just one energy bill to their head office rather than having to process several invoices every month. Compare the business’s energy needs to find the biggest savings The comparison website will then compare the business’s energy needs to find the biggest savings available and then highlight which will be the cheaper business electricity supplier. With the prospect of business energy prices increasing in the near future, it is also worthwhile considering whether the organisation should lock into fixed energy rates for one, two or three years. There will, undoubtedly, be a fair number of businesses wondering why they should switch their energy supplier at all and the new P272 HH meters will offer data that will show where savings and efficiencies can be made. Also, the reason for switching energy is a simple one, because it makes sound business sense to do so. Data from the HH meter thanks to the P272 rules Not only will the business save money by utilising the data from their HH meter thanks to the P272 rules, the savings will range from several hundred to thousands of pounds every year and they may also enjoy better customer service and other services as well. For instance, some business energy suppliers will offer to undertake an audit of the firm’s energy usage to see where savings can be made so the firm could reduce their overheads even further. The business energy market is a competitive one following the deregulation of the industry and businesses can choose an energy supplier of their choice. Some organisations may also be concerned that their energy supply will be interrupted as they switch suppliers but these worries are unfounded. Also, there will be a large number of firms who have their energy supplied by one of the ‘big six’ business energy suppliers and they may be wondering why they should move from an organisation that meets their needs. The introduction of half hourly meters through the P272 legislation While there’s no doubt that the big six firms will be providing most of the energy needs for the UK’s business sector, this dominance also leads to a range of high energy bills through uncompetitive tariffs – hence the introduction of half hourly meters through the P272 legislation. The government and the energy regulator Ofgem are keen to introduce competition that will help to see lower prices being introduced and improve customer service levels. To help boost the level of competition within the industry, businesses are being encouraged to switch their energy supplier on a regular basis. The other issue is that many businesses are not aware of just how easy it is to switch business energy supplier and the process is smooth and trouble-free. The end result will see the firm enjoying lower overheads which will mean a boost to their profitability. In addition to using business comparison websites, a firm can also utilise the expertise of business energy brokers who understand how the market works and will have access to the latest deals and tariffs that will better meet a business’ need.   For many firms, an ideal solution is to contact the experts at D-Energi who will be able to explain more about the P272 legislation and source a cheaper energy deal with just a few details from the firm to help them enjoy better business electricity and gas rates.
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1 Mar

Looking For Business Energy Suppliers?

by Simon Thompson
 
For any organisation looking for business energy suppliers, the market will appear to be complicated to navigate. While there are lots of commercial energy suppliers, including the better-known names, there are lots of opportunities to reduce energy bills with just a little bit of effort. So, for those who are looking to find the cheapest business electricity and gas deals, it’s important to find a contract that meets their needs and reduces bills. It should also be appreciated that suppliers will be offering a range of services as well as lower prices in a bid to entice potential new commercial customers. This means it is worth the time taking a look at what they have to offer. Business electricity suppliers who offer a low a fixed price Indeed, some organisations may prefer to find those business electricity suppliers who offer a low a fixed price and longer contract term. For many organisations, this policy would make sound financial sense since energy experts are predicting that energy prices will rise over the coming years. To find the best deals, organisations also need to understand that while they could check comparison websites to find lower prices, these prices may not be available to their business. That’s because business energy suppliers will offer a bespoke deal and the organisation will need to find two quotes for their electricity and gas usage. Unlike for householders, organisations cannot get a dual fuel deal and must find separate quotes for each fuel type. While this may appear to create an obstacle, it also presents the opportunity to have two separate energy suppliers for gas and electricity offering the best prices. So, when it comes to accessing accurate quotes an organisation will need a recent energy bill to hand. Potential new business energy supplier This will have on it important information for the potential new business energy supplier, including the meter registration number so the supplier will know exactly where the organisation is. The bill will also show up the energy rates being charged and the organisation will also need to know when the current contract comes to an end. This is because they cannot switch energy suppliers mid-term and can only give notice to quit their current supplier in the weeks before the contract comes to an end. However, if the organisation owes their supplier money then they may be prevented from switching suppliers until the bill is finally settled. Also, there will be lots of organisations who have not switched suppliers previously and so their commercial energy contract will have been automatically ‘rolled-over’. In this situation, these organisations will probably be on a ‘deemed’ contract and are likely to be paying more for their energy than they need to but they can leave a deemed contract for a new supplier at any time. Compare business gas suppliers There are lots of reasons why an organisation should undertake to compare business gas suppliers for their prices as well as electricity suppliers, on a regular basis, and the main one is to ensure that they are not paying more than they need to for their business energy supply. It also helps to keep abreast of the market for prices and new suppliers entering with better offers. Once the firm finds a potential new supplier, they will then have an energy package tailored to their business needs. Some commercial energy providers also undertake an analysis of their customer’s usage to ensure they get the best deal that suits them and highlight ways to save money by using less energy as well. So, for organisations that are looking to lower overheads and beat ever-increasing business energy prices, it will pay to search the market and find a cheaper energy supplier. Savings that can be made every year While this may sound complicated and time-consuming, it’s a process that will pay dividends because the savings that can be made every year range from several hundred to several thousands of pounds. While the savings can be impressive, it should also be appreciated that the savings are applicable to organisations of all sizes whether they are small or large and range from one-man bands to multisite operations.   However, the most efficient way of searching the market for business energy suppliers and finding great deals is to contact a firm that specialises in sourcing these deals and that means contacting the experts at D-Energi who will be pleased to help.
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