Seeking energy advice for Charity with multiple leased properties and spiralling costs

kateacava

Hi all

We're an Arts Charity and are about to finish a fixed energy contract on 16 leased properties. The new fixed rates being offered are a 300% increase on the current rate. Is there such a thing as an independent advisor regarding energy rates who might be able to advise a charity like ours on the best course of action. Do we switch to a variable rate and not sign new contracts to see what happens in the new year or are we better fixing for 2 or 3 years at this higher rate. It's a hugely stressful situation and no one in the organisation currently feels knowledgeable enough to make a decision.

Thanks in advance.

Savvy_Sue

Yes, there are energy brokers who work with charities and I'd get in touch as soon as you can: the two I have used are LSI - now Inspired - and Utility Aid. 

tightauldgit

Just be careful with energy brokers as they (generally?) make their money from energy companies by getting businesses to sign up to energy contracts so the advice is not always impartial and as a commercial business you don't have the same protections as consumers. 

The situation is complicated at the moment as we don't know quite what is going to happen to the government support for business energy in the spring and longer term we don't know where prices will be. Given that, in you situation I would be tempted not to commit to a long term deal at current prices. I'd compare between waiting and seeing on the out of contract rates and signing up to a 1 yr fix and see what the sums come out to be. 

The business support for energy is a bit more complicated than the consumer price cap as it's a discount on the wholesale energy price charged - not a cap on pricing. So there can still be significant differences between providers.

Savvy_Sue

tightauldgit said:

Just be careful with energy brokers as they (generally?) make their money from energy companies by getting businesses to sign up to energy contracts so the advice is not always impartial and as a commercial business you don't have the same protections as consumers. 

That is true. I think (hope) the two I mentioned are OK in this regard. LSI came recommended by NCVO. 

kateacava

Great thanks so much for the replies. We'll speak to the two brokers you've recommended and I am tempted to agree and see what happens in the next few months rather than sign up for long term fixed deals at these prices.

Robin9

Don't forget to complete VAT declaration to ensure you pay 5% not 20%

You can always contact the suppliers direct.

Don't factor into your calculations the Business Energy Relief  - it ends in March and is chicken feed- mine was 0.24721 p on 34.3536 (I have a 1 year contract)

Snow_Dog

Does anybody have any good ideas on the best suppliers to use that are currently competitive for a Scout Group hall? (Scout group is a charity so I figured it would be OK posting in this section).

The standing daily charges have become astronomical.

Savvy_Sue

Snow_Dog said:

Does anybody have any good ideas on the best suppliers to use that are currently competitive for a Scout Group hall? (Scout group is a charity so I figured it would be OK posting in this section).

The standing daily charges have become astronomical.

I'll repeat the suggestions for brokers I made a couple of years ago, although I can't vouch for their existence any more. 

Savvy_Sue said:

Yes, there are energy brokers who work with charities and I'd get in touch as soon as you can: the two I have used are LSI - now Inspired - and Utility Aid. 

Note the warnings already given about brokers. 

I'd also recommend speaking to the Scout Association and asking for their advice: groups owning their own huts isn't uncommon, and they may have identified a good broker (who will understand the particular issues of needing to get the place warm for short periods at regular intervals, but otherwise just prevent pipes bursting!)