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Energy is a fundamental part for most, if not all businesses but can also be completely overlooked leaving many organisations missing out on the best prices for their energy. This is where a TPI or an energy consultancy comes into play. Energy consultancies are in the business to understand the energy market and are often well equipped to help many organisations from differing backgrounds to reduce energy costs and provide expert advice on the supply contracts that your company commits to.

Unfortunately, there isn’t just one universal contract type that fits every single individual business in the UK. Businesses come in all different shapes and sizes, from small retail boutiques to factories mass-producing products on huge assembly lines. As a consequence, there are a vast number of different energy contracts out there to accommodate the differences in consumer demands.

Non-commodity makes up around 60% of your business’ total energy costs, and 40% of your energy budget is made up of the commodity or wholesale energy, so the actual energy itself, depending on the market conditions of when you agreed your energy contracts. What is non-commodity? Non-commodity charges comprise of several costs including the cost to transport the energy to your site, energy losses through transportation, network charges, government levies such as CCL, environmental taxes and much more.

Every half hourly metered site within the UK has a supply capacity, which is set by the Distribution Network Operator (DNO) based on the agreed capacity reserved for each location. Your business’ agreed supply capacity is the amount of electricity your DNO must make available for each of your half hourly metered sites. Your business agrees the level of capacity that should be reserved for each of your half hourly meters with your DNO. You are able to change the agreed level; however, this can only be done once per year.

According to a survey released by Make UK: The Manufacturers’ Organisation, manufacturers who put sustainability and environmental improvements at the core of their business, obtained significant cost-savings across their company. The report shows that 50% of manufacturers are making advancements with sustainability programmes and 71% saw a reduction in business costs after implementing their last environmental improvement plan.