Purchasing advice and consultancy
Now you have a choice
At Utility Aid we offer a full range of consultancy services to take the difficulty out of purchasing your utilities. These services are factored into the final agreed energy contract as a commission paid by the contracted energy supplier and are not a direct cost to the charity.
We provide purchasing advice in two ways:
Wholesale Energy Purchasing
Wholesale energy purchasing is where companies buy energy from the wholesale energy market where it is traded as a commodity. The minimum energy consumption requirement for a business to trade on this market is 50 GWh per annum. By combining the energy consumption of a number of businesses in a portfolio arrangement Inenco, the UKs’ largest energy consultancy, will trade the portfolio as a notional company and thereby bring the advantages of the wholesale market to the Small to medium enterprise.
Since 2003 when Inenco first moved clients onto the wholesale market, the demand for this service has grown until Inenco now has £1 Billion of energy under management for a number of 'Blue chip' companies and many SME businesses including some major charities.
Inenco and utility Aid have now signed an agreement, which will allow any charity into the scheme, irrespective of their energy spend.
Why is this advantageous?
Conventional tender style purchasing leaves clients at the mercy of the market on any given day as energy prices, since de-regulation now fluctuate hourly. The supply of energy and price you pay is divided into three main components.
a) Generation - accounts for 70% of the final billed price
b) National distribution - accounts for 25% of the final billed price
c) Local distribution and billing - accounts for 5% of the final billed price
Conventional tendering falls within area C and thus, there is little room for manoeuvre. Purchasing directly from the wholesale market takes us to area A where 70% of price is generated and energy is purchased flexibly. Eg energy can be bought for delivery tomorrow, next week, the month, the year. Or out to 2014. whenever the energy traders seen an advantage.
How does it work in practice?
Utility Aid will position groups of charities to enter into an 'energy basket' which will join with the £1,000,000,000 worth of energy being placed by Inenco on behalf of their clients on the 1st October of every year. Prior to the basket Utility Aid will, if necessary position you, with short term contracts, to enable you to enter into the basket at the correct time.
How much does this cost?
Fees, as with traditional purchasing will be included in the delivered price, it is therefore cost neutral to the end user. The term of the agreement is a 36 month minimum with the option to continue after that is desired.
What are the benefits of joining the scheme?
- For the first time ever, regardless of usage, profile, charities can combine
their energy purchasing power with others to gain entry to a market previously denied them. - Buying on the traditional market is highly risky as the user has only one chance to set the annual price, but by joining this scheme, the risks are managed by Inencos’ professional energy traders, thereby improving the chance of achieving better prices.
- Conventional billing is still maintained as energy is delivered and billed by selected distributors who bill the prices previously set by the Inenco traders. Therefore billing will be familiar to the user.
- The Inenco wholesale purchasing scheme has the endorsement of the CBI.
Supply Contract Purchasing
We provide advice and consultancy services to charities that do not wish to use wholesale energy purchasing or who need to arrange short-term energy supply contracts prior to joining the wholesale energy market.
Our service includes:
We are happy to explain every step of the process, and remain with you throughout the entire contract. Not only does Utility Aid act as an independent point of contact for your organisation, we have taken steps to ensure that your experience with our energy partners keeps you as one of our valued customer for a very long time.
Data Collection
Data Collection – Whether you are a single site entity or a multinational corporation with offices across the country, Utility Aid will inform you of exactly what you need to prepare in order to begin the consultancy process and more importantly help you collate any missing information we may require from you that you might not have to hand.
Proposal Formulation
Proposal Formulation – Having analysed your current arrangements, our team will create a bespoke proposal which will take into consideration your organisation’s characteristics and your own unique requests and purchasing requirements.
Tendering
Tendering – Once the proposal has been created, pre-approved suppliers will be invited to tender for your business. Utility Aid has unique service level agreements in place with each of our suppliers so you can rest assured that only the best suppliers are being selected for the chance to have you as a customer, giving you a quality assurance unlike any other in the marketplace.
Contract Negotiation
Contract Negotiation – Utility Aid will review the various pricing options presented from suppliers and select the most cost effective option for your consideration. Once a supplier has been selected we negotiate the finer points of the contract on your behalf, including preferred payment and billing options, start dates etc.
Implementation
Implementation – Once the contracts have been checked and forwarded to you to review and sign, Utility Aid communicates with both your old and new supplier to ensure a seamless transfer takes place at the agreed time and any envisaged problems are addressed and resolved before the transfer date.
Monitoring
Invoice Validation - With regard to energy contracts, empirical evidence show that as many as 15% of invoices from energy suppliers are incorrect and the industry is renown for overcharging unwise customers. When you are a Utility Aid customer, you can have peace of mind that your invoices have been cross checked, the standing charges are correct, the Unit Rates are at the contract level, VAT levels have been verified, Climate Change Levels (CCL) has been calculated at the correct rate and the invoice has been verified by Utility Aid as being correct for payment.