Expert Comment: Utilities Cost Reduction

Following the latest Bottom Line email sent on behalf of The Centre for Cost, Purchase & Supplier Management – further questions have been raised about the articles relating to Energy and Water.  Below are responses to three articles directly relating to the utilities sector.

24,000 businesses to get choice of Water supplier:

Expert Comment:

“This will only affect very large water users, and I suspect that the savings will be minimal since one water company is likely to charge the same as another. As the article mentions, under the current rules, only one company has actually switched supplier, but there are many other ways to save money on water.

“By selecting the most suitable tariffs, and by making the most of the concessions available, then savings of 10% or more should be achievable. And there could be even more savings by taking steps to reduce water consumption and wastewater discharge.”

UK energy prices uncompetitive for manufacturers:

Expert Comment:

“I’m afraid that this is true. The UK has committed to some very steep reductions in carbon emissions, and large business consumers ( over 6 gig ) are being made to pay the price via the CRC Scheme. Indeed one large user client has budgeted an extra £100 k / year to cover these costs.

“The only way to save is for them to reduce their carbon emissions. Which is why we have developed our offer to include carbon reduction consultancy services for large users. “For small and medium sized users we can now secure for them 100% renewable energy which is exempt from the Climate Change Levy (CCL). This means that it is no more expensive than the normal ‘brown’ energy, and may be cheaper.”

Smart meter users face hidden charges:

Expert Comment:

“Smart Meters are installed and operated by a 3rd Party. The largest of these is Siemens metering services. And they are naturally more expensive than conventional meters.

“Most suppliers will absorb these costs and include it in their prices. So it is effectively free to the consumer. However, other suppliers may not do this and present these metering charges as extras. This is where consumers need to be careful as to what is included in their quoted prices. There are some suppliers who are deliberately exploiting this confusion.

“Although Smart Meters may slightly increase metering costs, this is more than offset by the increased accuracy of these meters. We can arrange for these meters to be installed free of charge for our clients.”