Collective Energy Buying

1. Working Together: What
You Need to Know About
Collective Energy Buying
www.energyteam.co.uk

2. Working Together: What
You Need to Know About
Collective Energy Buying
Discover how businesses can save money and
reduce risk with collective energy buying.
www.energyteam.co.uk

3. Energy costs are on the rise
Energy costs are rising year-on-year due to
government policies and the rising cost of
wholesale energy.
According to DECC, over the five years from 2006
to 2011, in cash terms, wholesale gas prices
increased by 17% and electricity prices by 26%
£

4. Energy costs are on the rise
Energy costs are rising year-on-year due to
government policies and the rising cost of wholesale
energy.
According to DECC, over the five years from 2006 to
2011, in cash terms, wholesale gas prices increased
by 17% and electricity prices by 26%
This is why businesses need to harness their
collective purchasing power and find a better deal
on their energy.
£

5. Combining the energy
consumption of multiple
businesses has many benefits:

6. Combining the energy
consumption of multiple
businesses has many benefits:
Increased purchasing power.

7. Combining the energy
consumption of multiple
businesses has many benefits:
Increased purchasing power.
Better opportunities to get the best
rates.

8. Combining the energy
consumption of multiple
businesses has many benefits:
Increased purchasing power.
Better opportunities to get the best
rates.
Access to flexible contracts that
are usually only available to larger
businesses.

9. Combining the energy
consumption of multiple
businesses has many benefits:
Increased purchasing power.
Better opportunities to get the best
rates.
Access to flexible contracts that
are usually only available to larger
businesses.
Reduced supplier risk premiums.

10. Fixed price contracts
aren’t best value
Traditional fixed price contracts offer
the expectation of budget certainty.
However, they can be poor value for
money as they only represent market
prices at a single point in time and will
include a risk premium.

11. Collective purchasing means:

12. Collective purchasing means:
Combining your consumption with similar
businesses.

13. Collective purchasing means:
Combining your consumption with similar
businesses.
Purchasing ‘little and often’ for lower risk
premiums.

14. Collective purchasing means:
Combining your consumption with similar
businesses.
Purchasing ‘little and often’ for lower risk
premiums.
Taking advantage of market price drops to
help avoid high prices.

15. Collective energy buying must be
implemented by a central decision-making
body.
Members of the purchasing collective will
appoint this body.
Ideally this should be a specialist who
understands the market and continually
manages purchasing requirements.

16. Spread the purchasing risk
The wholesale market is extremely volatile, so when it
comes to purchasing energy, the key to managing risk
and obtaining good value is flexibility.

17. Flexible purchasing means energy
can be bought when market
conditions are more favourable.

18. Flexible purchasing means energy
can be bought when market
conditions are more favourable.
Purchasing is closely monitored
by the provider’s analysts and
aligned with a detailed risk
management strategy.

19. Flexible purchasing means energy
can be bought when market
conditions are more favourable.
Purchasing is closely monitored
by the provider’s analysts and
aligned with a detailed risk
management strategy.
This supports decision-making
and sets pre-defined risk limits.

20. Take action!
Collective energy buying doesn’t
have to be hard work - Energy
brokers or trade associations may
already have organised a scheme
you can join.

21. Take action!
Everyone’s in on it - The government
is urging consumers to look into
collective energy buying too.

22. Take action!
If you have always opted for a
fixed contract and procured your
own energy, collective purchasing
is an alternative you should be
considering.