Gas and Electricity Price Hikes

Gas and electricity price hikes have commanded a lot of attention recently.

These price increases have been caused by a number of world events including uncertainties in the Middle East and the earthquake and Tsunami in Japan which in turn have caused worries about supply shortages going forward.

With these price hikes in mind, together with clocks going forward and the colder months fast approaching, now is the time to think about Utilities supply arrangements.

Companies need to review their Utilities supply arrangements on a regular basis to ensure they are in appropriate contracts. In some cases, companies who have not negotiated new fixed term contracts may be paying in excess of 50% more than they need to for their energy supply! In this day and age, that could prove very costly

Companies also need to be smart when negotiating new contracts to reduce the burden of the recent price increases; in a very volatile market that sees changes on a day to day basis, this may be achieved by simply approaching the market at the right time and not when the market is at a peak. However, companies can also obtain an advantage by trying to bring all energy contracts under the umbrella of a single supplier with a single contract end date.

Not only does this simplify the administration, this will also allow companies to take advantage of better pricing as energy providers will offer better rates depending on the level of business being placed.

Energy efficiency should also be looked at, as by reducing the energy used, companies can make significant reductions on their bills. Fairly easy steps can be taken to reduce consumption, this may involve looking at replacing equipment which will involve capital costs or it could be as simple as looking at internal policies for powering off computers terminals and other equipment.

What is clear is that companies need to consider their Utility spends now and not in 3 months time when the cold dark nights are well and truly upon us.

To find out more about how Expense Reduction Analysts can help you manage your utilities costs, click here to send an email to the expert.