Securing an energy contract, without the pain
Cielo Energy Ltd
In a market with so many ‘consultants’ all wanting to offer you an energy contract, how can you choose the best one?
When you’re getting calls 20 times a day from a consultant wanting your business, cut through the noise and work with a business with real industry expertise.
At Cielo Energy we work with businesses to make sure that they get the best energy contract for them. We have unparalleled experience in the energy market, having worked in it since it first deregulated in the 1990’s, and focus on getting a competitive energy supply contract that can save your business significant money and time.
Whatever your business needs from a single site to a complex multi-site including generation and demand, Cielo Energy offers a consistent focus on securing the best contract for you.
Work with Cielo Energy and you can forget worrying about energy and focus on running your business.
Whether your current contract renewal is imminent or in a year’s time we can work with you to get things moving in the right direction. No hard sell, no pressure, the start of a partnership where we become your energy department.
Try us out, we’re happy to chat and you can always reach us to talk about your options.
Below is a quick overview of the kind of options available to energy consumers. Its fair to say electricity generally offers more options than gas due to the underlying market complexity.
General advice:
Avoid the commission trap
No broker is providing their services for free (including us!), no matter what they tell you or what they call it, they are being paid for every contract they place. Included in the price you pay your supplier is a fee that will be paid to the broker throughout your contract term.
Commission rates vary massively from broker to broker and by contract type, and its unregulated, despite many years of calls from some suppliers and more honest consultants. Ask your broker how much they’re charging you – and don’t accept anybody who says its free!
We are happy to tell you our commission on your contract – or be paid directly by you if that suits better. We believe we add value to your business and our ongoing service justifies the costs.
Complex does not mean better
There are many types of energy contract, some of which are discussed below. There is a trend in contracts getting more complicated.
Bear in mind, if something is complicated that doesn’t necessarily make it better for you! Look at various financial crises in history and the route is often customers buying products that they didn’t understand.
In many cases, a complex contract may be best for you – but make sure you know what makes it better, and what the risks you hold are. If your broker can’t tell you – find another one that can.
Fixed Price Fixed Term Contracts
The simplest contract form where you can take a contract for a period of time with a known price per unit consumed.
This is the contract most businesses will have in place, with a duration of between 1 and 3 years.
Flexible Contract
Flexible contracts offer the end customer more options about how prices are set, but come with higher risks for your business than fixed price contracts.
These contracts can be structured in many ways, and include many different pricing structures. Many consultants will sell a flexible contract as a guaranteed win for the end user, which isn’t true. Having a consultant that understands the offer being made by your supplier and can do a real comparison of the different structures is critical to knowing what you’re getting in to.
Pass-Through Contracts
There are many complex elements that make up an energy bill. These are created largely by the obligations that suppliers are legally obligated to pay on your behalf for infrastructure (pipes and wires), low carbon (renewable energy subsidies), security of supply (keeping the lights on).
Some contracts include a pass-through of these costs, where rather than paying the risk premium your supplier may include against the volatility in the price it pays, your business pays the ‘actual’ cost.
Not all passthrough contracts are equal, and pass-through contracts may not be appropriate for your business.
Corporate Power Purchase Agreement CPPA
The product of the moment for energy supply to larger businesses.
These contracts provide the opportunity for consumers to structure a contract with a notional link directly back to a (usually renewable) generator. Used properly they offer the opportunity for businesses to really engage with the move to decarbonisation; but they also come with a huge opportunity for ‘buyers regret’ in a few year’s time, so being properly advised is key to long term success.
Developing a relationship
However you chose to contract for your energy, Cielo Energy has the experience, skills and desire to provide the support you need. We seek to develop a relationship, and offer ongoing advice and support as your needs change.
Cielo Energy: simplifying energy for you, today and tomorrow - 0333 242 3273.
Stuart Lloyd-Evans
Cielo Energy Ltd