We live in a world where information is in abundance and coupled with the choice of a free competitive market, means we have never had more factors to consider when making a purchasing decision.
Energy Legislation and the supplier’s interpretation of this, makes for a very confusing market place with products full of stipulations and terms that make it consumer un-friendly and uncertain.
Why is it like this?
Believe it or not, it’s not the suppliers fault. A lot of the fully delivered electricity rate is comprised of subsidies that have been imposed by government. These are schemes designed to incentivise green generation in the UK by providing financial aid to these projects.
The supplier then must forecast the volume and ultimately the cost of these schemes before they are active or generation volumes are even known.
What does this mean for the consumer?
It means that you have some less than obvious choices in the market. For the purposes of demonstration and my tongue firmly lodged in my cheek you can choose from the following:
- Fully Fixed Pricing but Expensive
- Definitely fixed but not properly
- Sounds fixed but is not at all
- Sort of fixed but don’t ask me to put it in writing
- Defiantly not fixed…..good luck
Ultimately what this means is that there is the right product out there for you and your business, you just need to be sure what you are buying.
How can I be sure and make the right choice?
It is no surprise that today we find that over 80 percent of the market use a third-party consultant or broker. It has never been more important to get impartial advice on the supply offer that are being put forward.
Ensure the following:
- You are speaking to a reputable third-party.
- Ensure that you are not just looking at supply pricing but have a written breakdown of what’s included and more importantly what isn’t and the potential financial risk of those charges.
- You understand the costings of the third party involved and the service you will receive.
Having those three steps completed will best place you and your business for a clear, transparent and shock free experience when purchasing energy.
Alex Dovey is UK General Manager of Eutility, a company specialising in energy consultancy and energy cost management service to more than 3,000 customers across multiple locations in 3 different countries including Australia, New Zealand and the UK.
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