In these ‘Straightened Times’ the newly observed behaviour of Energy Suppliers is creating concern in many circles. Whilst there patently is an economic downturn, some behaviour can best be described as over enthusiastic. In most circumstances now all Energy Contract Renewals or Transfers are accompanied by a Credit Check on the business concerned, even when staying with your current supplier.

This new found paranoia has resulted in an exuberant application of the word ‘NO!’ . Whilst not wishing to be disparaging regarding the merits of such a process, businesses are failing, it is easy for the third party credit checking organisations to err ‘statistically on the side of caution’ and say no. continue

Smart Metering is in the news today and the BBC have produced an overview of how a smart meter works in addition to their discussion on how much you can save with a smart meter. Whilst these refer to the domestic market, there is significant relevance for the business market also.

It’s a familiar story; if you can’t measure it or see it, it can be hard to do anything about it. It seems unlikely that energy prices will reduce over time, and this combined with the focus on Carbon Reduction Commitment for all, should make this a very real issue for most businesses.

Empirical research suggests that simply monitoring consumption, improves awareness and typically consumption will fall. Thus at the most basic level smart metering will help. What Smart metering will do above and beyond the basics for business is provide, up to date accurate information about their consumption.
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Following a recent investigation, Ofgem has released a new set of guidelines for implementation this autumn designed to protect small businesses by increasing transparency in contracts and agreements with energy brokers and advisors. This will reduce many of the problems faced by small businesses in negotiating deals and clarity on knowing what rights they have as a business energy consumer therefore reducing the number of complaints and hours spent resolving disputes. These changes include:
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Energy Benchmarking is the latest buzzword in the world of energy management, carbon emissions and conservation. We are finding that increasing numbers of new and existing clients are questioning how and where they can save energy. This is where the Carbon Trust can assist. The Carbon Trust was set up by the UK Government in 2001 and is an independant company created to “accelerate the move to a low carbon economy by working with organisations to reduce carbon emissions and develop commercial low carbon technologies.”

It might be worth spending some time using their Benchmarking Tool For Office Buildings – here you can make an assessment of how much energy you use in your office spaces and compare this with benchmarks produced for 4 different office types as part of the very detailed ECON 19 publication. This enables the user to flag up any potential need for change and improvement in efficient use of energy.

The edging up of Oil prices seems to be the fillip required by the Energy Industry to get on board with both UK Wholesale Electricity and gas prices edging up. Although last year’s July high of over $150 a barrel descended below $40 in December, prices this first quarter of 2009 seem to have steadied above $50. Now that the initial reaction to ‘The Recession’ has settled somewhat, we are back now to the more traditional political and economic machinations against the new globally depressed context.

Whilst OPEC (Organization of the Petroleum Exporting Countries) has previously set aspirations for the $100 barrel, their latest monthly ‘Oil Market Report’ (March 09), suggests an ongoing acknowledgement of the change in the world markets, and are pursuing the balance between returns for their members against the needs of the Global Consumers in a recession.

It certainly looks that although the upward pressures are still pushing hard (don’t expect the Financial Markets to stop talking up prices this year), it’s not so easy if no one is going to buy. In the Mid market Business market some suppliers are seemingly reluctant to offer longer term fixed rate deals, perhaps anticipating rates going up this year.

Make sure you read those Terms & Conditions or at least make sure that whoever is arranging your energy contracts ascertains exactly what is being signed. Whilst there are significant government backed efforts to support the pressures on Businesses at the moment, not everyone is being quite so supportive. Apparently the notion of ‘Limited Company’ status doesn’t wash with business energy supplier Scottish Power.

the director who signs the Agreement on your behalf…shall irrevocably and unconditionally be jointly and severally liable for any and all payments…’ so make sure the business pays those bills!

Even if the business is paying the bills, there are potentially draconian additional requirements.

at our (Scottish Power) sole discretion we may also require the said director within 7 days of request, to provide us with a personal guarantee…for an amount no greater than an amount equal to the previous quarter’s usage.

Let’s hope your energy costs aren’t large.

In the 21st century one of the greatest challenges we face is tackling that of climate change and global warming. It is clear that there is a link between our everyday activities and the increase in pollutants and greenhouse gas emissions. Therefore the issue of climate change is one which we have to tackle thanks to protocols and policies such as the KYOTO agreement and the UK Climate Change Bill. So ‘going green’ could be used as a stimulus to help the UK and potentially the world to pull itself out of the recession we are falling into.

Job Creation?

The electricity sector currently generates a huge amount of emissions with about 75% of UK power stations being coal or gas fired. In fact electricity generation accounts for over a third of the UK’s total carbon emissions. Therefore, if the UK were to migrate to using more alternative electricity generation methods such as wind, solar and hydro, emissions would fall dramatically. This transition could also produce a huge opportunity for job creation in the Low-carbon sector.

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