EDF Energy said it can offer businesses a fixed price for energy for five years.
The supplier announced yesterday a £50 million contract with South Staffordshire Water to fix the “majority” of its energy costs.
The contract was signed in February 2014 for a supply starting in 2015. It runs for five years until 2020 when the water firm’s next investment cycle finishes.
Keith Marshall for South Staffordshire Water said: “Electricity accounts for almost 20% of our annual costs, second only to salaries.
“This contract means [we] can better focus attention on energy reduction and carbon management rather than trying to beat the wholesale market.”
Sid Cox, Director of the Business division at EDF Energy said: “We know that businesses are looking for ways to control costs and reduce risk. Businesses wanting to get long-term price certainty should follow South Staffordshire Water’s lead.
“Partnership with our sister company EDF Trading made this unique purchasing approach possible and I believe this industry first would also benefit other businesses that want longer-term price certainty.”
He claimed the firm can offer prices out as far as 2024.