Posts tagged energy
Energy Intensive Industries: Impact on Care Providers

To ensure the UK meets its low carbon targets, the Government has introduced several policies that are driving renewable growth. However, they’ve also increased the cost of electricity and made UK prices higher than in other countries.

To help Energy Intensive Industries (EIIs) in the UK compete with their EU counterparts, the Government suggested they should be exempt from some Third Party Charges (TPCs). The cost of the exemption would be paid for through an increase in costs for non-EII businesses.

Power Direct ask how much this is costing you and what is the impact on your business,

What is the Energy Intensive Industries (EII) exemption costing your business?

In an effort to meet low carbon targets, the government has introduced several policies that are aimed at reducing greenhouse gas emissions by incentivising increases in renewable energy. This has had the effect of driving up retail electricity prices, which in turn, has put pressure on UK businesses to remain competitive with those in other countries that are paying lower energy bills.

In response, the government introduced a scheme to reduce the cost of energy for businesses classed as Energy Intensive Industries (EII), in a bid to ensure that UK businesses can remain competitive. It meant that EIIs should be exempt from the costs of the Renewable Obligations (RO) scheme, the Contracts for Difference (CfD) scheme and the Feed in Tariff (FiT) scheme.

The businesses qualifying for the EII exemption are those where energy usage makes up a significant part of production, such as those within steel, chemicals, engineering and brick-making industries.

What does it mean for your business?

Earlier this month, the government announced that it is now considering widening the eligibility for the current EII exemption.

The proposed changes would mean more British businesses benefiting from a reduction in their energy bills.

But if you’re not one of those qualifying businesses, what impact will it have?

Most businesses won’t be eligible for the EII exemption. It means that, as with the current scheme, these businesses will face higher costs for their energy, in order to subsidise the scheme.

What can you do to minimise the impact?

In order to keep rising energy costs in check, you might find that you will benefit from a fully-fixed, fully inclusive contract that looks to take into account future regulatory and non-energy cost changes. This means you can be confident your costs will remain fully-fixed for the entire period of the contract, and you won’t get any unwelcome surprises along the way!

Next steps

For an informal discussion about the best energy solution for your business, call Power Direct Ltd’s friendly team of energy consultants on +44 (0)1452 347 549



Power Direct offer great savings on energy prices

About Our 2018 Energy Buying Basket

Our energy buying baskets are intended to help businesses that want the best available rates for their gas and/or electricity whilst being able to fix their prices for the length of the contract. Combining your purchasing power with others means that the prices will be better than if you purchase on your own.

Many energy buying baskets are sold on the basis that the energy will be bought on a ‘wholesale’ or ‘flexible’ basis. The energy buying basket at Power Direct is not like that. The term of your contract will be a minimum of 12 months and a maximum of 24 months, depending on when your current contract ends, and your prices will be fixed for that period. All the options that we have negotiated include direct debit payments.

Clients who purchased their gas as part of our last basket, on average, saved 5.4% per meter and an average of 3.4% per meter on their electricity, compared to the best individual price quoted.

Our next basket will be in March 2018 and anyone with an electricity or gas meter with a contract end date between now and September 2019 can take part.

Our gas basket is currently at 9,546,246 kWh and our electricity basket is at 6,174,706 kWh both of which are growing fast.

Power Direct in Action

Whilst checking the latest invoice for a care home, we noticed that they had not been billed for any night rate consumption. Since we knew that the premises had a meter fitted that should identify day and night consumption separately and that our client had been contracted to pay differential day and night rates, we knew this could not be correct.

We contacted the supplier to ask them to investigate the fault. The supplier advised us that it looked as though the meter was configured incorrectly and it needed an engineer to visit the premises to replace the meter.

All the consumption had been charged at day rates when some of the consumption should have been charged at a lower night rate. The client had been overcharged and would continue to be overcharged until the metering issue was corrected. We proceeded to arrange an appropriate time with the client and supplier for the meter to be changed.

The meter was swapped and after obtaining up to date meter readings the supplier advised that the client used on average 81% consumption during the day and 19% during the night. The supplier acknowledged their error and split the consumption 75% (day) - 25% (night) for bills they had already sent. They then credited back the invoices and rebilled.

This generated a refund of £382.96 and going forward the client was not further overcharged.

 Get in Touch

To find out more about our energy buying baskets or for anything else relating to your energy supply, please don’t hesitate to contact Jordan either by phone 01452 347 549 or email