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Large business energy solutions

Large business energy solutions

4-large-and-industrial-business-energy

If you require specialist energy advice and management and have an energy intensive industry, this guide is for you. Here, we’ll explain how to manage energy for a high energy consumption industry like yours, the various types of contracts and services available, as well as industrial energy efficiency measures to help reduce your usage.

For help with securing a tailored contract, call us on 0800 158 3710. Our specialist team will discuss your business needs and support you in getting a competitive price.

What qualifies as a large business?

With energy, your usage level determines whether your business is classed as small, medium or large. Your business will be classed as large by energy suppliers if it uses:

  • More than 200,000,000 kWh of electricity per year
  • More than 300,000 kWh of gas per year
  • A Half Hourly (00 Profile) meter
Whether your business is gas-intensive, electricity intensive, or both, it’s likely your energy bills account for a large proportion of your overheads.

What types of energy services are available for large businesses?

Due to the large amount of energy required to power your business, you need extra energy services to ensure you’re paying a fair, affordable price and are always on top of your account.

Here are services and contracts we offer to help you with this.

Bespoke procurement service

Bespoke procurement is a comparison service we offer to large businesses like yours. As part of this service, we help you get a fair price by tailoring quotes to your business needs.

As your business is a high energy consumption industry, suppliers will bid for your supply as part of the comparison process. Here’s how it works:

  1. You’ll be assigned a specialist account manager who will get your permission to find out your energy details and arrange an appointment to discuss your quotes.
  2. We’ll contact your supplier to confirm your meter details and exact annual usage. As you have a half-hourly meter, this figure will be accurate.
  3. Suppliers will compete to win your supply and offer tailored quotes based on your peak times of usage. This process can take up to five working days.
  4. We’ll call you with the most competitive quotes and guide you through the benefits of each.
  5. Once chosen, we’ll handle the entire switch and keep you updated every step of the way.

Bill validation service

Occasionally, mistakes can be made through incorrect contract charges or estimated billing. But, we know that monitoring your bills can be time-consuming. That’s why we offer a bill validation service that automatically monitors the accuracy of your bill using a tool that reviews and recalculates your costs, whatever the type of meter you have.

If there’s a problem, we will work to fix it. So you can be sure that you’re always paying the right amount for your energy.

Metering and data collector service

As part of the running of your energy supply, you have a Meter Operator and Data Collector. Your Meter Operator is responsible for the installation and maintenance of your meter, and your Data Collector is responsible for monitoring your meter data and collecting it for your supplier.

Suppliers usually appoint their own Meter Operators and Data Collectors, which aren’t always the most cost-effective. But, we can provide a range of options to help you save money and give you insight into your business energy usage data.

Services for business with multiple sites

We offer a tailored multisite journey based on your business needs. Whether you want to consolidate your contract into one end date and one single bill or multiple bills, we can do this for you. For more information on our multi-meter and multi-site offerings, visit our Multi-meter and multi-site gas and electricity management page.

What types of energy contracts are available for large businesses?

As well as bespoke services, we also offer a range of contracts depending on your preferences. These are:

  • Fixed-price contracts
  • Pass Through Contracts
  • Time of Use contracts

Fixed-price contracts for budget certainty

If you’re looking for budget certainty a fixed price contract is the right choice for you. Fixed contracts allow you to fix the price you pay for the wholesale cost of your gas or electricity for a specified period – usually between one to four years. This will protect you from fluctuations in energy market prices, although your bills will naturally vary depending on how much energy you use.

Your supplier can provide a forecast of what they expect third-parties to charge during this time – this includes maintenance and environmental costs. A fixed contract means you’ll be able to estimate your outgoings for the length of your contract manage your overall budget more easily.

Pass-through contracts

A pass-through contract allows you to fix certain elements of your contract, including the wholesale cost. For other third party costs, such as transmission and distribution charges, you’ll only pay the rate your supplier is charged - rather than having this cost preemptively built into your contract fees.

The main benefit of this contract is that you’re paying the direct cost a supplier is charged, rather than an inflated cost that’s pre-calculated with risk premium built in. So, the charge breakdown is more transparent.

The drawback to this contract is that your rates will change throughout the duration of your contract. This means you could be paying more one month and less another month, leading to less budget uncertainty and more complexity on your bill.

Exemptions for the climate change levy

Your business energy bill will include the Climate Change Levy (CCL) – a government-imposed charge for all business energy users using 33kWh or more of energy each day. The CCL is designed to encourage businesses to reduce their carbon emissions and to take steps towards energy efficiency. If your energy use involves mineralogical and metallurgical processes, you are 100% exempt from paying the CCL.

You may also be able to apply for an exemption from the CCL if you take steps to improve energy efficiency by signing up to the Climate Change Agreements (CCAs) or the CRC Energy Efficiency Scheme (CRC Scheme). CCAs are voluntary agreements taken by energy-intensive businesses to receive up to a 90% reduction in the CCL if they agree to meet certain energy efficiency targets as agreed with the government. The CRC Scheme is designed to incentivise energy efficiency and reduced carbon emissions in large energy users.

If you get your energy from eligible renewable sources or use combined heat and power (CHP), you may also be exempt from the CCL. Alternatively, you could look for a supplier that only provides low-carbon energy, helping you qualify for CCL exemption.

Our Business Energy Efficiency guide has more information about saving energy as a large or industrial business.

Visit Ofgem's website for more information on the business energy market

To ensure you’re getting the most from your energy contract, speak to our Major Business team. We can ensure that you’re on a great bespoke deal, based on your needs and could save you money in the process.

Fill in the form to find out more or call 0800 158 3710.