Control Energy Costs

Control Energy Costs awarded Investors in People accreditation

Control Energy Costs — 25/06/2020

Here at Control Energy Costs, our employees are very important; without them we would not be able to operate.

Ensuring we can be the very best employer is at the top of our agenda as a business.

We were delighted to be awarded the we invest in people accreditation in March 2020. It was a lengthy and thorough assessment process which included employee interviews and questionnaires, as well as our policies, procedures and ways of working being put under the spotlight.

About Investors in People

Investors in People is part of the UK Commission for Employment and Skills. The organisation focusses on what it takes to lead, support and manage people well for sustainable results. Investors in People sets out standards for people management, offering accreditation to organisations that meet and adhere to the Investors in People Standard.

Why we think this is important

The accreditation reflects our business commitment to ensuring our people can thrive through good engagement, attention to wellbeing, effective performance management and investment in leadership and management development.

As a business we wanted to know both what we were doing well, and what we could be doing better, so that we could celebrate success and look at where improvements could be made.

How we will use the feedback

The honest and open feedback given by our employees has been incredibly insightful. We are using the recommendations from Investors in People to create an action plan. This will ensure that we make continual progress and that everyone is involved.

How things have changed since receiving our award

Obviously, there has been a significant change in the way we have been working since receiving the award.

We have had a lengthy period of working from home, and this has meant that many of our employees have been juggling homeschooling and other responsibilities and we have been incredibly proud of how they have adjusted to these changes.

Our teams have been working remotely, managing their workloads and communicating via a range of remote technologies.

Some of the feedback we received from our employees

The comments from our employees highlight the hard work undertaken by everyone to ensure that we have a workplace that is positive and that our employees are happy and that they come to work in a positive environment that supports them.

“Our values are about integrity, excellence, supportiveness and we are expected to behave consistently; it feels positive, Control Energy Costs is a nice company to work for.”

“Control Energy Costs has always had a nice vibe; people look out for each other and it is a good team environment”

“It’s hard work but it’s good hard work and management are very fair and understanding. Anyone joining would be lucky to do so.”

“I feel a strong ownership of my role and I am very happy about that”

ESOS Phase 3

Control Energy Costs — 04/09/2023

ESOS Phase 3

The Energy Savings Opportunity Scheme (ESOS) is a mandatory requirement for all large enterprises in the UK. The deadline for submission of Phase 3 reports is now 5^th June 2024.

The scheme requires a survey and audit of energy usage and reporting of energy data for buildings, transport, and industrial processes over a 12-month period. All surveys have to be undertaken by a qualified Lead Assessor.

ESOS is designed to help businesses reduce carbon emissions, identify potential cost saving measures and how to implement them.

To find out if your business is eligible, you can download our ESOS fact sheet.

The point of ESOS

ESOS is not meant to tax industry but to help businesses become more energy efficient and energy aware. The overall aim is to reduce consumption and therefore carbon emissions, your Lead Assessor’s report will identify potential cost saving measures and how to implement them. Taking action on the results of the audit is not compulsory.

How is Phase 3 different from previous phases?

Phase 3 requires an increase in auditing as areas of significant energy consumption have increased to 95%.

This will include data collection, site surveys, report writing, portfolio extrapolation and a sign off presentation to a director. Half the number of Lead Assessors are available to complete the compliance sign-off, increasing pressure on the market.

What are the sanctions for non-compliance?

The financial penalty can be up to £50,000 with an additional £500 per day.

Unlike with previous ESOS phases where the Environment Agency has been lenient, late submission of phase 3 compliance will likely receive enforcement action with penalties.

How can Control Energy Costs help?

We ensured compliance for over 40 large companies under Phases 1 & 2, so are well-placed to assist any business with Phase 3. If you would like to check whether your business is compliant, please get in touch on 01737 556631 or email sales@cec.uk.com.

What is the Made in Energy Club?

Control Energy Costs — 05/10/2022

Back in 2021, Made In Group and patron member Control Energy Costs came together to create an Energy Club for all members. The energy club now continues to allow members to 'save on their business energy costs'.

Liam Conway (Head of Sales at Control Energy Costs) in the video below speaks about the Made in Energy Club, as part of a Masterclass event which looked at how can UK manufacturing and engineering companies can manage spiralling bills in 2022. This talk was broadcasted as part of a Virtual Masterclass held for Made in Group members in May 2022.

To find out more

Please get in touch with Liam Conway, Head of Business Development, on 07501 221728 or by email at liam.conway@cec.uk.com

You can also download the brochure – www.cec.uk.com/energy-club-brochure.

Seven benefits of an electric vehicle fleet

Control Energy Costs — 18/08/2021

Since the Government brought forward the ending of the sale of new petrol and diesel cars and vans to 2030, and hybrids to 2035, the impetus for electric vehicle fleets, including EV trucks, has grown even stronger.

As transport provides the largest proportion of UK carbon emissions – 26% - there are many reasons to start planning for a move to an EV fleet. Here are seven of the main ones.

1. Sustainability and ESG

An EV fleet will undoubtedly help an organisation reduce their carbon footprint. It is a strong statement underlining commitment far beyond simpler changes, such as LED bulbs. It will also support investment, particularly when that is linked to the achievement of ESG (environmental, social and corporate governance) goals.

It improves air quality and exposes your employees to fewer pollutants.

2. Enhancing reputation

Consumers and business customers are increasingly looking at buying from brands that have strong green credentials, especially amongst millennials and Generation Z. This also applies to attracting and retaining employees, who will want this commitment from their employer.

3. Tax advantages

There are tax benefits to having an EV fleet, including benefit in kind tax advantages for company car drivers and reduced Class 1A National Insurance contributions and reduced total cost of ownership.

There is no vehicle excise duty on zero-emissions cars and exemption for eligible vehicles from schemes such as the London Congestion Charge, all of which will reduce running costs.

4. Lower costs and improved productivity

Whilst many fleet managers may have concerns about the cost of buying a new EV fleet, there are ongoing savings in addition to tax benefits. This includes a lower cost of fuel, lower maintenance, increased productivity and the potential to save through charging stations using locally generated electricity or commercial battery storage.

Maintenance costs are lower as electric vehicles have fewer mechanical parts and are more reliable. There is also better data available for pro-active maintenance than there is for petrol and diesel vehicles. A more reliable fleet means less downtime and enhanced productivity, especially as there is then no need for drivers to avoid low emission zones.

Total cost of ownership of EVs is now very similar to that of a petrol/diesel vehicle, as are the driving experience and performance.

5. Higher employee satisfaction

As well as supporting employees who need company vehicles, installing EV charging points in your company premises will be of benefit to other employees with their own electric vehicles and may encourage other staff to buy one too, as they would no longer have “range anxiety”.

6. Zero no-go areas

There is an increasing number of low and ultra-low emissions zones in the UK and some areas are planning to only allow zero emission vehicles beyond certain dates. That could have a significant impact on any fleet, particularly for a business with a nationwide presence.

7. Monetising EV charging

Depending on your business, you may be able to provide EV charging to customers for a fee, as well as the benefit of retaining them on site/in store for longer.

You can also look for ways to monetise through investing in commercial battery units for your charging points, buying power off-peak and then using during peak hours to charge EVs, potentially selling any surplus back to the grid at peak rates.

You may also be able to invest in your own on-site generation, such as solar power.

Where did it all begin?

Electric vehicles are not new. The first practical electric road carriage was built in 1887 by Magnus Volk. This Columbia Electric at Beaulieu Motor Museum was made in 1901 in the US and marketed in Britain by The City & Suburban Electric Carriage Co of London.

It was bought new by Queen Alexandra to use at Sandringham. The Autocar of 25^th May 1901 quotes: “Her Majesty … is delighted with the ease and simplicity of control and manipulation.”

The downside was that batteries were heavy and the range was limited (the Columbia had a range of 40 miles on one charge).

Enormous progress on this front has been made, and continues to be made, since 1901.

Where is it all going?

We think it is a case of when not if. Fleet managers should be putting plans together now and engaging with manufacturers to ensure that the electric vehicles being designed will meet the future needs of business fleets.

The benefits of electric vehicles are strong and will continue to get stronger between now and 2030.

COP26 is nearly here

Control Energy Costs — 28/10/2021

Anticipation is sky high as COP26 UN climate draws closer to date. The COP26 summit will bring parties from over 190 countries together to acknowledge and discuss the global climate crisis.

Representatives from all over the world including world leaders and negotiators are expected to attend. The UN’s climate summit was delayed by a year due to Covid-19 but now has the go ahead to proceed during the first two weeks of November.

The two week event is co-organised by the UK and Italy, which describe it as “the world’s best last chance to get runaway climate change under control.”

This year’s COP26 that will be held in Glasgow has been predicted to be a “tsunami of ambition” by Claire O’Neill, managing director of climate and energy (WBCSD). The UK will be working with all countries involved to take the necessary actions to fight climate change and global warming. There will also be discussions and debates over countries’ targets for this cause and submissions of “nationally determined contributions” (NDCs), pledges that explain how countries plan to go green and reduce emissions.

UK Prime Minister released a statement ahead of COP26:

“Securing a brighter future for our children and future generations requires countries to take urgent action at home and abroad to turn the tide on climate change. It is with ambition, courage and collaboration as we approach the crucial COP26 summit in the UK that we can seize this moment together, so we can recover cleaner, rebuild greener and restore our planet.” – Boris Johnson

The goals of COP26

The main objective of COP26 is for the world to achieve net zero or ‘carbon neutrality’ by year 2050, a target set at COP21 in 2015 when the Paris Agreement was reached. The Paris Agreement is a legally binding international treaty on climate change with a goal to limit global warming to well below 2 degrees Celsius.

COP26 will require all countries to outline how they plan to lower their greenhouse-gas emissions. A legally binding treaty, it has nearly 200 countries signed on to reduction targets.

There are specific goals that need to be achieved at COP26. But what are they?

Secure global net-zero by mid-century and keep 1.5 degrees within reach
Adapt to protect communities and natural habitats
Mobilize finance
Work together to deliver

These goals are certainly attainable but seem complex due to the alarming rates of energy consumption and carbon emissions in the atmosphere. To reach these targets, countries will need to implement new strategies such as switching all vehicles to electric, phase-out coal consumption, invest in renewables and much more. Critics have said the 2015 targets will not achieve zero emissions in time and experts say more substantial country commitments are needed.

The summit will be used to encourage countries to protect and restore their ecosystems. It’s important for all to build a strong and resilient infrastructure and agriculture to avoid loss of homes and lives. COP26 is the world’s last best hope to limit global warming with the summit’s tagline being “make a plan for our future”.

Funding for the cause

When talking about finance, it’s crucial that the more well developed countries aim to mobilize at least $100billion in climate finance per year. We need international financial institutions to participate in this scheme too to help poorer countries provide funding towards net zero. Reports have shown that some countries have not stuck to their $100billion target, and the USA pulled out whilst Donald Trump was in presidency. Now that Joe Biden is in power he has re-invested $11billion back into the cause and has promised to provide more funding.

In a statement, a COP26 spokesperson said “We are committed to hosting an inclusive summit in two weeks’ time, which showcases innovative work from a range of businesses and civil society groups who are committed to tackling climate change together.”

The conference outcome could determine whether the world can meaningfully limit global warming.

Control Energy Costs supports manufacturing sector

Control Energy Costs — 20/10/2020

Control Energy Costs is holding a series of webinars to support the manufacturing sector during November.

The webinars are being held in conjunction with sector specific organisations, including the Association of Industrial Laser Users (AILU), the Confederation of British Metalforming (CBM) and the Surface Engineering Association (SEA). Control Energy Costs will also be holding an online session for Black County Chamber of Commerce.

The challenges faced by the manufacturing sector are numerous and the impact of Covid-19 has been significant, with the challenges of Brexit on the horizon.

Control Energy Costs can offer advice, support and guidance to members of these associations in terms of energy procurement, support with Climate Change Agreements and the analysis and reporting requirements as well as their other services. These include forensic cost analysis, invoice resolution and other energy related projects such as the installation of electric vehicle charging points and reporting for legislation and compliance.

Control Energy Costs has a focus on supporting the manufacturing sector, working with more than 450 manufacturers across the UK to provide full utility management, procurement, and energy related projects.

The last webinar held on 13^th October with Made In Group was successful and Control Energy Costs have identified a potential refund due of £80,000 to one of the attendees.

Chris Shield, Group Managing Director, Shield Group

“They have successfully reduced the amount of energy we use by 15% - a significant achievement when you consider how energy-intensive our businesses are. They understand how to negotiate the best contracts, can advise on the schemes out there that give you support and have a fantastic overview of legislation, so we know all of our activity is compliant.”

Webinar schedule

4^th November 10am Black Country Chamber: Register here.

5^th November 10am Confederation of British Metalforming to register email melinda.jean@thecbm.co.uk

12^th November 10:30-11am Surface Engineering Association to register email dave.elliott@sea.org.uk

19^th November Association of Industrial Laser Users: Register here.

For further information about Control Energy Costs, please contact Head of Business Development at liam.conway@cec.uk.com or 07501 221728.

£500,000 Energy Savings & Refunds Secured For Made In The Midlands Members

Control Energy Costs — 05/06/2017

A few headline figures from our involvement as a Patron with Made In The Midlands over the past 16 months.

We've secured over £500,000 energy savings & refunds, working with 65 members with an average of £7,692 saving & refund per member.

Been great to work with so many members and support the outstanding work of Made In The Midlands in helping manufacturers understand their energy costs better.

We would be delighted to have a conversation with you regarding your energy costs to see if we could help you in the same way!

Please feel free to approach us at any networking event or by contacting LiamC@cec.uk.com / 07501221728

Plastic Manufacturers Only Have Until 29th June To Benefit From Climate Change Levy Tax Relief

Control Energy Costs — 01/03/2018

Whilst a number of trade bodies operate Climate Change Agreements (CCA's) the British Plastics Federation (BPF) is closing the door to new entrants as of 29th June 2018.

Therefore if you are in the plastics sector and you have yet to check your eligibility for the scheme it is now time critical that you do so.

Providing you qualify and after completing the appropriate paperwork the benefit to the business is a 90% reduction in Climate Change Levy (CCL) charges. Given the majority of plastics manufacturers are heavy electricity users this amounts to substantial potential reduction.

As CCL is a tax the rate at which it is charged continues to increase. April 2019's published rates are close to 50% higher than current costs. The ongoing benefit of seeking advice and implementing the CCA is significant and may help manufacturers with recent contract price increases.

If you would like further information or help in understanding the opportunity please do get in touch. LiamC@cec.uk.com / 07501221728

Phil Ager's Silver Jubilee

Control Energy Costs — 22/07/2022

25 years ago, in July 1997, Phil Ager joined Control Energy Costs. Chris Ellis came on board 21 years ago in September 2000 and Dan Oman 20 years ago in July 2002.

Control Energy Costs had already been going for 16 years when Phil joined and in 2014, Phil, Chris and Dan bought out the business from the founders, who were looking to retire.

Phil took the role of Managing Director, Chris is Production Director and Dan is Operations Director. With their combined 86 years in the energy market, 66 of those with Control Energy Costs, they have seen many changes and know more about the energy consultancy sector than most!

It has been an exciting and very busy time for the whole team since that point. In 2019 we rebranded the company and formalised our brand values, which have served as a guiding light since then.

Our brand values of transparent, focussed and progressive are the foundation to everything we do and our plans for the future:

We are committed to our people and were awarded Investors in People accreditation in 2020. Our people are the ones delighting our clients day in, day out, We promote skills development, encourage participation and ideas, and support physical and mental wellbeing, as well as family life.
We have launched new services and provide advice and information for clients on many different aspects of business energy
We have many long-term relationships, founded on trust and mutual confidence and we are open about every aspect of what we do, including how we are paid
We have been championing renewable energy, running a “green energy” awareness campaign since 2020, and are well under way on our own path to net zero

Under Phil’s, Chris’s and Dan’s stewardship, the company has grown, offering excellence to clients and positioned perfectly to support businesses that want to save on their energy costs, embrace renewable energy and work towards net zero.

At the end of the day, none of us ever forgets our ultimate purpose – providing outstanding service and negotiating the best deals for you, our client. Here’s to the next 25 years!

So, what has been agreed at COP26?

Control Energy Costs — 01/12/2021

As the most anticipated summit of the year has come to an end, it is hoped that life changing decisions and agreements have been made for the betterment of our lives and our planet.

All things climate change were discussed at COP26 and a first draft of the Glasgow Pact has been published. A series of climate pledges have been made by world leaders to bolster emissions-cutting targets for 2030 by the end of next year.

What has been agreed so far at COP26?

One of the key commitments raised is for countries to submit more elaborate carbon cutting plans by the end of 2022. It has also been agreed that climate finance needs to be increased and exceed $100bn a year as this will help poorer nations deal with climate change. As coal and fossil fuels are 2 of the biggest contributors to carbon emissions in the atmosphere, the COP26 document calls for them to be phased out – but provides no firm dates or targets.

Deforestation

One of the major deals made at the summit was regarding deforestation. More than 100 world leaders promised to reverse and end deforestation by 2030. UK Prime Minister Boris Johnson said "We have to stop the devastating loss of our forests. End the role of humanity as nature's conqueror, and instead become nature's custodian". The pledge to support this includes almost £14bn of private and public funds. Climate experts approve the move but worry it won't be achieved as in a previous 2014 deal, deforestation was not tackled at all and in fact, still continued at an alarming rate.

Coal

As the major contributor to carbon emissions in the atmosphere and climate change, coal was a main topic of discussion. At least 23 nations have agreed to phase out coal power completely and end support for new coal power plants. Singapore, Nepal, Poland and Vietnam are among countries that have agreed to this move. For the phasing out of coal, at least 40% of the world’s 8,500 power plants must close by 2030 and no new ones built. COP26 President Alok Sharma proclaimed “The end of coal is in sight”.

Finance

A programme has been launched by the EU to fund climate innovation alongside the European Investment bank and Bill Gates. Financial institutions have a big part to play in the journey to net zero to pay for emission cuts and adaptation. An initiative consisting of 450 banks and pension funds will be working towards “clean” green such as renewable energy. This is an effort to commit private companies to meet net zero targets and to provide finance for green technology and away from fossil-fuel burning industries. The final agreement on finance detailed that climate finance will be doubled and go towards adaptation.

Methane

Methane is another main contributor to climate change and is a hazardous air pollutant. A pledge to cut 30% of methane emissions by 2030 has been agreed by more than 100 countries. Methane is described as a powerful greenhouse gas which comes from sources including fossil fuel extraction and livestock farming. Once reduced, it will make a significant short-term contribution to climate action.

Half of the world’s top 30 methane emitters, including the US, EU, Indonesia, Pakistan, Argentina, Mexico, Nigeria, Iraq, Vietnam and Canada joined the pledge - but China, Russia and India have not yet.

To summarise, parties have collectively agreed to look for ways to increase actions continuously with the overall objective to reach net zero. COP26 this year was a step in the right direction but in the eyes of many falls a long way short of where we need to be.

Businesses threatened by credit insurance amidst energy crisis

Control Energy Costs — 22/09/2022

As electricity and gas contracts come up for renewal for many UK businesses, the credit implications of higher value energy contracts are posing an additional threat to their survival.

Credit insurance

Energy suppliers will always consider the credit risk when offering a new contract to a client, as credit insurance offers them financial protection against bad debt. However, the surge in energy prices and the volatility of the market are increasing the risk to the insurers in providing that credit.

Consequently, businesses are finding that credit insurers are refusing to provide cover and in turn their energy suppliers are declining to offer a renewal contract. Some have been forced into paying big security deposits to evade being left with punitive out of contract rates.

SMEs are high-risk to insurers

Small and medium-sized businesses (SMEs), particularly in the hospitality, retail and leisure sectors, are considered “high-risk” to credit insurers. Struggling to recover in the aftermath of Covid-19, their revenue will also be hit by decreased consumer purchasing power, as rising domestic bills and inflation cause the public to cut down on non-essential spending.

Unless businesses can demonstrate a good credit record, energy suppliers are not willing to take the risk. Credit insurers that work closely with energy suppliers would generally be looking at businesses to have two years of post-pandemic accounts published, as evidence that they are robust and financially sound.

Government support

Following the PM’s announcement on 8^th September 2022, businesses who are struggling to protect themselves against soaring energy bills are expected to receive a support package for a six-month period. The package includes the reintroduction of a trade credit insurance scheme for energy.

She also announced a joint scheme between the Treasury and the Bank of England to provide up to £40bn Covid-style loans to energy suppliers, helping them to meet the “extraordinary” cash requirements they face in the wholesale gas and electricity markets. The scheme is expected to be up and running by the end of October or sooner.

These measures are proposed to “ensure that firms operating in the wholesale energy market have the liquidity they need to manage price volatility.”

Next steps

You may think that holding out till the last possible opportunity to renew your contract is the best strategy but this is not advised. Not having a plan and simply delaying a decision to renew could leave you vulnerable.

If you need an opinion or would like to find out more about fixed or flexible purchasing, please get in touch with us.

You can also download our free flexible energy eBook.

Robinson Brothers - Case Study

Control Energy Costs — 26/05/2021

Founded in 1869, Robinson Brothers is one of the UK’s largest independent manufacturers of fine chemicals and rubber accelerators, offering a wide range of custom manufactured chemicals. They supply numerous industries with various applications for the chemicals they produce.

Gail Arnold, at the Black Country Chamber of Commerce, introduced Robinson Brothers to Control Energy Costs, as a chamber partner who could add value to their business.

Energy requirements

Robinson Brothers has a significant energy spend of more than £1 million annually. Such an overhead can have a real impact on the bottom line, therefore, it is imperative they get quality advice and work with a true partner who understands the business operationally so they can receive sector-specific advice.

Like most business, they are inundated with calls and emails regarding energy. These do not tend to reach the door of Finance Director Graham Parker, however, on the recommendation of the Chamber, he invited Liam Conway in for an initial conversation.

Liam at Control Energy Costs initially met with the Finance Director, Graham Parker, who explained that the business had a current energy advisor with whom they worked. Graham was keen to benchmark them and understand if they were getting the best value from their existing arrangements.

Working together

Liam was given an opportunity to look over the energy spend, contracts and investigate if savings could be made and if there were other opportunities that Robinson Bothers could take advantage of.

Liam was able to offer a reduced energy spend versus the existing advisor, as well as offering further consultancy services such as:

Monthly reporting, analysis, and assistance with their climate change agreement
Forecasting of energy spend, market updates and intelligence for budgetary consideration
Electricity and gas contract negotiation and management

As a direct result of the close partnership, Liam was introduced to their sister company, Endeavour Speciality Chemicals, and they are now working with this part of the business too.

"We have been impressed with their reporting and analysis tools and the fact that we could always reach someone who can answer any of our energy-related questions and queries. We have been delighted with the relationship, so much so we introduced them to our sister company who are now clients!"

Graham Parker
Finance Director , Robinson Brothers

Letters of authority

Control Energy Costs — 30/07/2020

All legal documents should be read and understood before signing and a letter of authority is no different in this respect.

At Control Energy Costs we often discover that companies have quickly signed a letter of authority without fully understanding the implications of what they are allowing a third party to do on their behalf and therefore we thought this would be a good topic to cover.

A letter of authority can give a third-party access to the following:

Negotiate with energy suppliers on your behalf
Handle any invoice issues or queries directly with your supplier
Deal with any administrative issues relating to your energy supply
Collate data and consumption reports
Look at historical consumption and billing
Deal with any Climate Change Agreements and legislation compliance
Review and negotiate payment terms
Obtain information from third party industry databases

A letter of authority should NOT allow a third party to:

Renew energy agreements on your behalf
Switch your energy contract
Sign anything which ties you into a contract of any kind

How long should a letter of authority be valid for

A letter of authority is usually valid for 12 months.

Rogue energy brokers and letters of authority

Unfortunately, we often see letters of authority from energy brokers that enable them to enter energy contracts on behalf of a client, terminate agreements and switch suppliers. This can be a bit like passing them your credit card and pin number and should be avoided at all costs!

No energy broker needs to be able to do this; as a business, you should always be signing contracts yourself and be fully in control of the sanctioning process.

We thought it might be helpful to include a link to our template letter of authority and this can be viewed here.

Examples Of Technical Errors & Areas Of Analysis For Your Energy Costs

Control Energy Costs — 18/01/2017

Energy suppliers and distribution companies make errors, these errors are usually technical and require thorough analysis to identify and rectify them.

Once rectified however, they may result in opportunities for refunds, rebates and credits to the client. Couple this with ongoing savings available by addressing the issue sooner rather than later or in many cases not at all, and there is a great reason to speak to Control Energy Costs Ltd about how we support our clients with technical analysis.

Additionally, without fully understanding these charges it makes comparing supplier contracts virtually impossible. A contract which may look good on face value may in fact be more expensive if some of these charges are passed through rather than included.

Some examples of technical errors are listed below:

Standing Charge	Tariff Structures	Usage Patterns
Faulty Meters	KVA ( Max Demand)	Reactive Power Supply
CCL	DUOS Charges	TUOS Charges
CT Ratios	Conversion Factors	Data Management
AV Cap	Load Factors	CT Ratios
Transmission Charges	Feed In Tariff	Renewables Obligation
Meter Misreads	OOC Charges	Delay In Registration
Maximum Export Capacity	Duplicate Meters	Overstated Consumption

As a Patron we now work with 54 Made In The Midlands members helping them get a better understanding of their energy costs. If you would like an initial conversation about the work we do which is without any cost or obligation please get in touch with Liam Conway on 07501221728

Competitive Water Market Due To Open Up

Control Energy Costs — 18/04/2016

The water market is due to move more in line with the commercial electricity and gas market as of 2017.

Here is a quick overview:

When

1^st April 2017.

The Current Situation

There are 18 retailers in England. They also control the wholesale side of business.

Wholesale basically covers abstraction, delivery and disposal, whereas retail covers billing and customer care.
Some 93% of the bill is made up of wholesale costs.

If a single site uses more than 5,000 m3 p.a. they can switch supplier. A supplier is not allowed to bid for in area business.

From now until 1^st April 2017

The existing retailers and new entrants have until the end of the year to submit their applications to become a licenced supplier.

Post April 1st 2017

Any non-household supply can appoint a supplier of their choice.

Market Operator Services Ltd (MOSL) are the Elexon/Xoserve equivalent.

Summary

1) Each supply should have a SPID( Supply Point ID) for both water and waste water. but so far the database is not complete.

2) The profit margin for retail is very small. It is unlikely we will see the level of discount possible in Scotland and a single figure % saving should be expected.

Control Energy Costs are technical analysts and experts in the areas of electricity, gas and water and would be delighted to speak with any Made In The Midlands member about the opening up of the water markets and how they could benefit.

Control Energy Costs notches up 100th MIM customer

Control Energy Costs — 01/08/2018

Made in the Midlands Patron Control Energy Costs (CFC) has notched up its 100th MIM customer - appropriately enough by working with a fellow Patron.

Workwear supplier MyWorkwear consulted with CEC when it looked to save money on its energy costs, although at first it was unsure if it could help.

James Worthington, managing director of Telford-based MyWorkwear, said: "When we started to look into our energy use, we discovered that we had three gas meters. Two were sub meters and one a fiscal meter. We weren't sure which one was our landlord's.

"After many phone calls CEC were able to unravel the issue and calculate how much money MyWorkwear would save.

"We were delighted by what CEC were quoting, not only would we save money straight away, we'll be saving for the next four years."

Liam Conway, Head of CEC Direct, said: "Most of our clients are large manufacturers. I was really pleased we were able to assist a fellow Patron unravel a complex billing and meter issue to their maximum benefit."

Aside from the satisfaction of working with another Made in the Midlands Patron, the consultation was the 100th time CEC has helped a MIM member reduce their energy costs.

Control Energy Costs has been supporting clients with energy costs audit and procurement services for 37 years. More than half of its clients operate in the manufacturing sector. The company sets itself apart from the competition by offering a transparent, clear and disclosed commission/fee. This ensures the client is clear from the outset on the level of service and cost.

My Workwear has been dressing companies across the UK since 1976. Whether you need your branding added to off-the-shelf clothing or are looking for alterations or uniform manufactured to your own specification, MyWorkwear always strives to make you 'Workwear Happy'.

The MIM Patron membership has been devised to provide manufacturers with access to a range of professional support services. Between them, the MIM Patrons can supply specific help on matters such as taxation, insurance, legal services, financial management, foreign exchange requirements, recruitment, energy provision, security and workwear.

Pictured: Liam Conway, left, with James Worthington.

Increased Electricity Distribution (DUOS) Charges For Manufacturers

Control Energy Costs — 22/03/2017

Increased Electricity Distribution (DUOS) Charges For Manufacturers

Ofgem has announced that from 1st April 2018 the way Distribution Use Of System (DUOS) charges are levied and calculated will change.

At present there is a premium charged at peak times (16:00 19:00 winter weekdays), scaling down during the amber and green period (weekend & nights)

The changes flattens these charges out meaning the disparity between red, amber and green is reduced. The idea is that this makes charging fairer and more cost reflective, and to make users consider energy management across the whole day and not just at peak times. There will still be a higher charge at red times but it will be greatly reduced.

This reduces the incentive to reduce power at peak times and the biggest losers will be those who have taken steps to load manage. The winners will be users of energy at peak times largely the domestic market.

Whilst news that the cost of electricity during these peak hours will be reduced sounds good, unfortunately because a typical manufacturing company still uses the majority of their electricity during the amber and green times they will be significantly worse as the cost in these areas has increased dramatically. Therefore any gain via the reduced red zone charges will be outweighed by the overall increase.

Every distribution area across the UK will have different charges however for DNO 14 ( West Midlands) we have calculated the increased distribution costs for a typical manufacturing client to be:

Low Voltage Supply - 15% Increase
High Voltage Supply - 32% Increase

These charges make up a considerable amount of the invoice and as such need to be addressed properly and fully analysed. This is particularly relevant for Made In The Midlands members who are looking at new supply contracts as you will likely see a cost increase versus current contract but also energy brokers tend to not specialize in this much detail and may fabricate the true impact to you to get a supply contract signed.

We now work with 60 Made In The Midlands members and as ever would be delighted to have conversations with many more about what we do and how we can support the sector in both understanding their energy supply and reducing costs.

For further information or a bespoke report on how this will impact you directly please get in touch.

Liamc@cec.uk.com

07501221728

Water Market Opens Up & Presents Opportunities & Problems For Manufacturers

Control Energy Costs — 26/01/2017

The retail water market is due to open to all non-domestic users from 1^st April 2017. We have been active in advising our clients of this change, however I thought Id cover the flip side just in case any Made In The Midlands members are considering signing with a broker who is pushing discounted water terms.

Background

The market opened for competition in Scotland back in 2008 and this is being used as the model for England (not Wales they voted against it). Initially the discounts were small but eventually increased and we suspect that may be reflected south of border.

Why Is This?

The regulator in Scotland carried out an audit of the water companies and analysed where the greatest margin (or profit) was possible. When the market opened the retailers offered modest discounts which the regulator did not challenge. The reason being the regulator knew the system was not robust enough to cope with a large number of businesses changing supplier or negotiating discounts all at once.

What Happened Next?

After the systems had proved themselves, the regulator using the results of the audit, insisted the water retailers pass on improved discounts to the end user. This increased savings from around 5% to 20 -25%. This was not back dated, it was only available to new customers.

Will This Happen In England?

Possibly We suspect discounts will increase over time but it is unlikely they will reach the figures in Scotland. Estimates reckon is will be nearer 12-15%.

So Is It worth Waiting?

If the pattern in Scotland is repeated in England, then the answer is yes. Ive attended a couple of presentations hosted by water retailers and they claim there is very little money in retail so any reduction will be minimal. They would say that, wouldnt they? The honest answer is we dont know, but from empirical evidence we reckon a delay might be beneficial.

But My Broker Is Urging Me To Sign Now

They might well be and that could be for reasons of self-interest. After all, a broker will get paid once that contract is signed regardless of a clients frustration that the long term deal the broker foisted upon them is both woefully uncompetitive and legally binding.

All Brokers Are Independent Right?

That depends on the meaning of independent. Just because a broker says they ae independent really doesnt mean that they are. It is the same for energy arrangements where more often than not an independent broker might have very cosy relationships with 1 or 2 suppliers and as such they limit their clients ability to access the whole market.

There Must Be Some Advantages Of Committing Early?

There are but they are not necessarily financial. Consolidated billing is a big plus for any multi-locational operation. At present they could receive bills from up to 22 different companies in England so having a single account each month makes life a lot easier.

What To Do Next

If you are an existing client your analyst will already be working on this for you or had initial conversations about your options. If you are a MiTM member who we have yet to meet and talk through our services as a MiTM patron please get in touch for a chat.

Contact Details

Liam Conway
liamc@cec.uk.com

07501221728

The power of the Made In Group Energy Club

Control Energy Costs — 03/06/2021

The Made In Group and patron member Control Energy Costs have come together to create an Energy Club for all members. The energy club allows members to 'save on their business energy costs'.

Collective buying power

By working together, this creates collective buying power, so that all members of the Energy Club can benefit from cost savings.

The more energy that is being purchased, the more trades we can make, giving us the ability to aim for a lower weighted price

Even if you’re still within contract, we can work with you to explore your options and have the most suitable and cost-effective plan in place for you, ready to go when you need it.

Renewable energy

Through the Energy Club, we can provide you with a wide range of 100% renewable energy contracts, to help you reduce carbon emissions and support your journey to net zero.

Wholesale market access product

The Energy Club gives members the opportunity to be part of the wholesale market access product, by providing you with access to wholesale purchasing as part of a flexible market approach.

As part of the Wholesale Market Access Product volume tolerances are spread across all Club members, giving more stability and security over your individual consumption profile. We are seeing many suppliers impose volume tolerance penalties and being part of the Made In Group Energy Club mitigates this risk.

To find out more

Please get in touch with Liam Conway, Head of Business Development, on 07501 221728 or by email at liam.conway@cec.uk.com

You can also download the brochure – www.cec.uk.com/energy-club-brochure.

Greenwashing

Control Energy Costs — 08/09/2020

Greenwashing is a term we are hearing more and more, but what does it mean and what examples are there within the energy industry?

Greenwashing is defined in the Cambridge Dictionary as being “behaviour or activities that make people believe that a company is doing more to protect the environment than it really is.”

In this article, we are going to cover some examples of greenwashing within the energy industry specifically.

100% renewable energy – the greenwashed variety

When you buy 100% renewable energy as a business, what you believe you are buying is energy generated from renewable sources such as solar and wind generation, but this is not always the case.

When renewable energy is generated, each MWh generated produces 1 Renewable Energy Guarantees of Origin (REGO) certificate. These REGO certificates can then be sold on.

Ofgem administers the REGO certificates scheme on behalf of the Government. Ofgem requires suppliers who offer green tariffs to explain to their customers clearly and transparently how they are sourcing their renewable energy, but this information often hides behind glossy marketing materials and promises of saving the planet.

Some suppliers sell 100% renewable energy by way of purchasing REGO certificates from genuine renewable generators.

But the energy they purchase is power from gas fired generation and other sources that are not renewable, they then ‘greenwash’ this energy by purchasing enough REGO certificates to cover themselves and market the tariff as 100% renewable.

A REGO certificate is purchased in the range of 15p to 50p per MWh so this is, therefore, a lucrative way to sell ‘renewable’ energy without the investment in green energy infrastructure.

A Which? An investigation undertaken in June 2019 investigated 355 renewable energy tariffs and found twenty suppliers that were using this technique of purchasing REGO certificates without contracts to purchase any renewable energy at all. You can read the full report from Which here.

Does any of this matter?

Yes, it does if you are serious about purchasing renewable energy. There is nothing illegal in any of this, it is just misleading.

For example, if you purchased a cup of Fairtrade coffee you would expect to pay a premium for it knowing you are supporting a small independent grower. Not only would be helping the grower but you might encourage others to follow suit thus allowing a naturally sustainable community to flourish. Both the product and the accreditation come together.

Another brand, not helping independent growers, could make the claim by matching a certificate to a coffee provider that does.

It’s the same with greenwashing. REGOs don’t reduce carbon emissions (you are still supporting fossil fuel generation), they are merely a mechanism a supplier will use to give the illusion of your green credentials. The greater difference will be made by ensuring your money is being invested in the development of real green energy sources.

Supposing you are serious about green energy?

At present the UK generates around 35% of energy from renewable sources and, if you are looking for a supplier of 100% renewable energy, then you need to ask the question about how green their energy really is.

There are a number of options you could consider:

1. Install your own renewable generator e.g. solar panels.

2. Purchase electricity from a fully renewable supplier.

3. Purchase brown energy but then offset the carbon.

Control Energy Costs can offer guidance on each of these possibilities.

Understand Your Electricity Supply Capacity Now... Increased Costs Are On The Way

Control Energy Costs — 05/05/2017

OFGEM are introducing a new regulation from 1 April 2018, which all MiTM members should be aware of and take action accordingly to address well in advance.

Half Hourly(HH) electricity supplies will pay significantly more if their Maximum Demand(MD) exceeds their Available Supply Capacity (ASC). To date, customers simply pay the agreed contract rates for any excess capacity used in the billing month. Consequently, there has been little incentive to review and increase capacity where necessary. In simple terms, really didn't matter if you exceeded your capacity as you were billed the prevailing rate.

This will change with the introduction of excess capacity penalties. In short, imposing a financial penalty for exceeded the Agreed Supply Capacity.

These rates have yet to be finalised but are anticipated to be in the two to three times the standard rate. There will be variations by region and voltage.

If you are unsure of how you profile versus your current Agreed Supply Capacity please get in touch. Be more than happy to look at it for you.

Equally understanding where you profile versus your current Agreed Supply Capacity may allow you to reduce it which will immediately reduce monthly costs.

As a MiTM Patron we conduct an in depth audit for members on all charging elements across electricity, gas and water. There is no cost for the audit, we are simply paid a share of any refunds or savings identified and secured.

LiamC@cec.uk.com / 07501221728

What are Scope 4 emissions?

Control Energy Costs — 09/12/2022

ou may be familiar with Scope 1, 2 and 3 emissions, but what about Scope 4? In order to understand its importance, let’s look at the three official scopes classed under the Greenhouse Gas (GHG) protocol.

Scopes 1, 2 & 3

The GHG protocol was introduced by the World Resources Institute in 2001, as an international standard for categorising corporate greenhouse gas emissions based on their source. The GHG protocol provides a framework for companies to identify and measure their carbon impact.

Three scopes are categorised under the protocol:

Scope 1 - covers emissions released into the atmosphere as a direct result of an activity, such as gas for heating an office or fuel for operating a vehicle
Scope 2 - covers emissions created from producing the energy that a company uses, in other words, the energy that a business purchases
Scope 3 - covers indirect emissions such as transportation and distribution, waste generated, leased assets, business travel, employee commuting, purchased goods and services through your supply chain and also water consumption

Scope 4 emissions

In 2013, the GHG protocol was updated to incorporate estimating and reporting of avoided emissions. These were coined ‘Scope 4’ emissions by the World Resources Institute.

Whilst not classed as an official scope under the GHG protocol and based on theoretical calculations, Scope 4 emissions refer to the estimated greenhouse gas emissions that have been avoided, due to the use of more efficient goods and services. The GHG protocol states that these avoided emissions occur outside of a product/service lifecycle or value chain, so they are not captured within Scopes 1, 2 and 3.

There are two main types:

Product/service replaces a more emission-intensive product e.g. a company that provides tele-conferencing services, reducing the emissions that would have been generated by travelling
Product/service enables emissions reductions elsewhere e.g. a manufacturing company that creates a low-temperature detergent

Scope 4 also covers homeworking emissions because they have avoided using transport with fuel and energy use in a much bigger work environment.

Why measure Scope 4 emissions?

It has become standard practice for businesses to measure Scope 1 and 2. Although not mandatory, including Scope 4 in carbon accounting can help businesses become more aware of their environmental impact and the steps required to reduce it.

However, as there is no standardised method of calculating Scope 4 emissions, this could lead to ‘greenwashing,’ where businesses make unsubstantiated claims – intentional or not – about their environmental action.

The GHG protocol suggests that businesses can avoid greenwashing by:

Accounting for every stage of the product’s life cycle
Considering changes in consumer behaviour
Segregating market size with impact

How we can help

If you are interested in measuring the environmental impact of your business, we can provide our clients with access to our client portal, CECIL, which enables you to identify and manage your business energy usage. You can also download our free green energy eBook for more information on green energy.

Feel free to get in touch with us for advice or an opinion on the best options for your business.

Will falling gas prices mean lower bills?

Control Energy Costs — 18/11/2022

The combination of unseasonably mild weather and the European storage of Liquefied Natural Gas (LNG) being at nearly 95% capacity has decreased demand for gas over the last month and wholesale gas prices have fallen accordingly.

Will lower prices last?

Despite this, it is unlikely that prices will be low for long enough to reduce energy bills. As we head into colder months and competition for gas from Asia sparks higher demand, it’s likely that we will see wholesale prices increase again.

Gas prices surged at the end of August when Russia cut off gas supplies through Nord Stream 1 – the main pipeline supplying Russian gas to Europe. This caused a sharp increase in Europe's wholesale gas price, jumping by 650% in a year.

Impact on flexible contracts

Businesses on flexible energy contracts are likely to have secured part or all of their forward volume requirements in advance. Known as ‘hedging,’ this offers an opportunity to leverage the high market prices that we expect to see over the coming months.

You can find out more about flexible contracts by downloading our free eBook.

What can we expect in 2023?

While it appears that Europe is primed for the winter ahead, increased reliance on LNG imports poses a threat for colder months next year, as Europe and the UK will have to be prepared to pay whatever the markets require to secure the cargo against the Asian competition.

The impact of Covid shutdowns on China’s economy has meant that they are currently importing less LNG, however when demand returns to previous levels, this will also drive prices back up.

European and UK gas supply will need to compensate for the expected 40bn cubic metre loss of LNG imports next year, as demand outstrips supply. Added to the challenges of rising competition for LNG from Asia and the inadequacy of European infrastructure to convert LNG to its gaseous form, the ability to meet business and consumer demand will remain difficult. Consequently, uncertainty is highly likely to persist throughout 2023.

Suffice to say, despite the lowest level of European gas prices since June 2022, businesses are unlikely to see a long-term decline in their energy bills until at least 2024.

If you need help or just an opinion, please get in touch with us.

Christmas

Control Energy Costs — 18/12/2020

Net Zero Club

Control Energy Costs — 09/11/2020

The Net Zero Club is for small to medium sized businesses who want to take leadership on reducing their impact on the planet.

By joining the Club, you become a net zero carbon business and remove your contribution to climate change. Once in the club, we will work with you to reduce your impact on the planet, offsetting your emissions on the way.

Our solution has evolved from over a decade of developing an understanding on what makes rising to the climate challenge easier for businesses. Most businesses don't have a member of staff who can work on this, so you need a simple go to solution. We have put together a simple 3 stage process:

1. Register and subscribe

Sign up for the Club and receive your Net Zero Club welcome pack. Congratulations, you are on the pathway to net zero carbon!

2. Calculate and offset

Working together, we calculate your carbon emissions and offset them, you are now carbon neutral. You have neutralised your impact on climate change.

3. Membership - visit Net Zero Hub

On the Net Zero Hub, you can access your membership benefits, check on your emissions and reduce your footprint so that the offset cost is lower next year.

If you would like to learn more, please get in touch. We would love to help you start your journey to net zero.

The Net Zero Club is in conjunction with our service partners Energise, a company with whom we have successfully delivered some 200 projects over the past 6 years.

Market factors behind higher energy prices

Control Energy Costs — 28/09/2021

If you are looking to renegotiate your energy contracts at the moment, it probably hasn’t escaped your notice that prices are high.

In this article, we explain the cause for the rise and an option which may allow you to avoid the worst of the increases.

Why are energy prices high right now?

Gas is still the primary driver impacting prices and accounts for around half of UK electricity generation.

Wind and solar, which account for 30% of generation, have both been low recently, especially wind, which is the largest single renewable source.

In turn, this has put increased pressure on gas for electricity generation, which was already in demand due to people being at home during the winter lockdown. However, gas supply has also been impacted by storage, which is at only 50% of the levels recorded last year, and pipeline outages, along with delays over the Nord Stream 2 pipeline completion date.

All of these factors increasing gas demand have contributed to a rise in wholesale electricity prices, which are running at almost double their seasonal norm. Carbon prices have also gone up, with an expectation of a tightening of regulation.

Our forecast

The pipeline outages are having a short-term impact on prices, which should ease when full capacity is restored. Whilst not guaranteed, we are also expecting more gas supply into the UK from other sources, which will reduce the pressure on winter pricing.

What options do you have now?

Your decision will depend on when your supply contract ends.

If you are looking to renew your contract now, you will almost certainly be seeing an increase, so you might want to consider moving to a flexible purchasing option which is something more and more of our clients are interested in.

This allows the option of making incremental purchases meaning you are not fixing all your volume in one go. By using this arrangement, you have the opportunity to take advantage of a future bearish market.

Purchases can be made well ahead of the delivery date at a time where we see a drop in wholesale prices. Additional fixes can be made until the whole volume is hedged, or we can allow a percentage of unhedged volume to float, thus reducing your exposure to market volatility.

If you would like any support or advice on what you might be able to do, please do get in touch.

Our Head of Business Development, Liam Conway will be covering this and what businesses can do to mitigate the effects in an upcoming Made Masterclass which you can register for HERE.

Metering and data collection

Control Energy Costs — 26/01/2022

With the rollout of initiatives to tackle climate change, net zero and renewable energy, monitoring energy usage is becoming increasingly important and is the key to identifying and reducing energy waste. It is all about visualising your data - the more detail you have, the easier it will be for you to spot an issue and take action.

What is metering and data collection?

For Half-Hourly metered electricity supplies having agents appointed as Meter Operator (MOP) and Data Collector (DC) is a mandatory requirement. A MOP supplies, installs and maintains the physical meter and communication link, whereas the DC’s role is to collect and distribute consumption data to your supplier. MOP and DC services can be provided by either the same or different parties.

Getting your metering and data collection services set up correctly has the potential to save you money, not just by helping you understand and reduce waste usage but also by reducing the actual cost of these services.

If you don’t know how much you are currently paying for MOP and DC services or have a direct agreement that you signed some time ago, chances are that you are paying more than you should be and there will be a financial benefit.

Do I have to allow my supplier to do this on my behalf?

The simple answer is no. You are free to enter into a direct MOP and DC agreement with a provider of your choice, rather than allowing your energy supplier to do so on your behalf. Depending on supplier, default charges for them to appoint agents on your behalf can be very punitive.

Working with clients that adopt our recommendation to sign direct MOP and DC agreements, we provide them with detailed consumption reports and access to visibility of data via our online portal.

They are able to set up exception reports which will allow them to pick up on anomalies as soon as possible, identifying areas of wasted energy to make savings and be sure they are doing their bit for energy efficiency and the environment.

Lifting the lid on carbon capture

Control Energy Costs — 20/09/2023

While increasing efforts to reduce carbon emissions is vital to tackling global warming, we must also accelerate these efforts by deploying technologies that remove carbon from the atmosphere. Carbon capture and storage (CCS) is one of these technologies.

How does CCS work?

The purpose of carbon capture is to prevent CO2 released by industrial processes, i.e., the burning of fossil fuels, oil, gas and coal from entering the atmosphere.

The process involves three steps:

1. Capturing

CO2 is separated from other gases released by industrial processes, such as coal and natural-gas-fired power generation plants

2. Transporting

CO2 is compressed and transported via pipelines, road transport or ships, to be stored.

3. Storage

The CO2 is injected into rock formations deep underground for permanent storage. According to the British Government, the North Sea is the most suitable storage site as it contains many empty oil and gas reservoirs, as well as permeable rocks called saline aquifers.

Carbon capture, utilisation and storage

There is also a related concept known as carbon capture, utilisation and storage (CCUS) which describes the re-use of carbon emitted by industrial processes by converting it into other materials e.g., plastics, concrete or biofuel.

Where is CCS being used?

According to a Global CCS Institute 2022 report, there were 61 new facilities added to the project pipeline bringing the total number of global CCS facilities to 194. However, only 30 of these are in operation, with 11 under construction and the remaining 153 in various stages of development.

Of the total number of projects, 27 are based in the UK. None of these are in operation.

The CO2 capture capacity of all CCS facilities under development grew to 244 million tonnes per annum – a significant increase of 44% compared to 2022.

UK Government plans

Carbon capture power plants – power stations equipped with carbon capture technology - form part of the Government’s plans to remove carbon from UK electricity production by 2035. It was proposed that the first plant will be built by the mid-2020s.

In March 2023, the Government agreed to funding three carbon capture facilities near Redcar on Teesside that would transport captured CO2 to the North Sea for storage. One plant will capture carbon from a gas-fired power station and the other two from hydrogen production.

There is also development of carbon clusters – hubs where different industrial processes can plug into the same CO2 pipes and storage systems.

The cost of CCS

The infrastructure required for CCS is expensive and there are some who believe renewables and power storage would be better investments. Particularly as none of the Government’s proposed carbon capture plants claims to capture more than 2m tonnes a year – a very small percentage of the 331.5Mt of CO2 emitted by the UK in 2022.

However, there is hope that the price might fall over time in the same way that it has for renewable energy in the last decade.

Dr Doug Parr of campaign group Greenpeace UK argues that the power stations are “another excuse for the Government to show preference to their friends in the oil and gas industry, making energy more expensive to everyone else's disadvantage.”

Carbon solutions

If you need help starting your carbon neutral journey, we’re here to help.

In partnership with Auditel, we’re on our own carbon neutral journey and would like to extend this service to our clients.

For further guidance on reducing carbon emissions without the usual associated costs, please contact our Client Relationship Managers, Nigel Addison-Evans and John Loizou.

Contact Nigel on 07500 027480 or email him at nigel.addison-evans@cec.uk.com

Contact John on 07425 102 023 or email him at john.loizou@cec.uk.com

Climate Change Levy (CCL) Potential Exemptions

Control Energy Costs — 07/03/2019

Climate Change Levy (CCL) is a government charge levied upon commercial energy users for electricity and gas usage.

All commercial energy users pay CCL however there are several potential exemptions outlined below:

• Businesses who qualify under mineralogical or metallurgical exemption. HMRC guidelines indicate that certain manufacturing processes are able to claim a percentage exemption. This relief can be retrospectively applied for a period of 4 years resulting in a refund as well as being applied for future invoices too.

• Business who are part of a Climate Change Agreement (CCA) administered by a trade association. These schemes closed to new entrants in November 2018. There may still be scope to qualify under the mineralogical and metallurgical exemption route outlined above.

• Qualifying charities who do not operate their facility for business use.

Climate Change Levy (CCL) rates are increasing significantly in April 2019 so we are advising businesses to ensure they are making use of the relief where appropriate.

CCL on electricity increases by 45% with gas increasing 67%.

CEC Direct offer a no obligation review of your current arrangements and will explore whether there may be potential for a CCL refund and on-going relief.

To start a conversation please contact:

Liam Conway – Head Of CEC Direct
LiamC@cec.uk.com
07501221728

There is a place for nuclear energy, and here is why…

Control Energy Costs — 29/04/2022

Is nuclear energy with its carbon neutral waste an answer to our growing energy needs or an environmental disaster waiting to happen?

What is nuclear energy?

Nuclear energy comes from the binding energy that is stored in the centre of an atom and holds it together. To release the energy, the atom must be split into smaller atoms. This process is called fission.

Why nuclear power?

Nuclear power is known as the most reliable, low-carbon energy source currently available to the UK. Nuclear power is a clean and economical way of boiling water to make steam, which then turns turbines to produce electricity. There is an ongoing demand for electricity in the UK and nuclear power has enough positives to be part of the solution.

It is said that no other electricity source can match nuclear when it comes to efficiency and reliability. Nuclear power plants can continuously produce large-scale, around-the-clock electricity for months at a time, without disruption and climate damage. Whereas fossil fuels are still a significant source of energy in the UK and are extremely damaging to the environment.

What are the benefits of nuclear power?

Nuclear power offers many benefits for the environment and is reliable and cost-effective. Though nuclear power stations may be considerably expensive to build, once built they have low maintenance costs and longevity.

Nuclear power can provide low carbon generation for years and years for businesses and domestic use, making it a useful investment. Unlike energy from wind turbines, nuclear power is consistent and does not depend on weather conditions to function.

Power plants do not burn any materials, so they produce no combustion by-products, making nuclear power one of the smallest carbon footprints. Whilst renewable energy such as solar and hydroelectric is a great for the environment, nuclear power has all the technology required to be used on a large scale.

Also, because they do not produce greenhouse gases, nuclear plants help protect air quality and alleviate climate change. It is estimated that since 1976, 64 gigatons of Co2 emissions have not been released into the atmosphere due to nuclear power.

What is the downside to nuclear energy?

Whilst nuclear plants do not produce emissions whilst operational, carbon dioxide is released into the environment when new plants are built which ultimately contributes to pollution and needs to be considered as part of the overall environmental impact.

Another big downside is radioactive waste, which although minimal in volume can remain dangerously radioactive for many thousands of years and impact on the environment. However, if waste is removed and safely stored until a permanent disposal site or better still a recycling option becomes available, it can be a good solution for the both the economy and the environment.

So how can nuclear play into our energy future?

Combined with renewable sources, nuclear power allows us to enjoy our energy needs without the impact on our environment that is coupled with fossil fuels. Nuclear energy might be the only way of dampening the effects of climate change and preventing a catastrophic man-made global warming.

Redhill’s CEC launches new e-book and film to mark 40 years in business and its commitment to Net Zero

Control Energy Costs — 22/04/2021

One of the UK’s leading utility management specialists is celebrating its 40^th birthday in style by committing to being Net Zero within 12 months.

Control Energy Costs (CEC) is working with its 25-strong workforce to review its current carbon footprint, before putting in place a blueprint to reduce energy consumption, purchase energy from renewable sources and rebalance any carbon emissions.

The company, which has its Headquarters in Surrey and a strong presence in the Midlands and Yorkshire, is going one stage further by helping the country’s SMEs to make the same commitment by launching a new e-book and short film.

They are designed to be a simple guide to help businesses understand more about renewable energy, how they can start reducing their carbon footprint and why it is important to engage with your employees. There are also sections covering the differences between Net Zero and carbon neutral.

The launch comes in the same week that the Prime Minister has announced new climate change commitments that will see carbon emission cut by 78% by 2035 - almost 15 years earlier than previously planned.

“Sustainability is firmly in the news and our Government has an ambitious target for when the entire country will be Net Zero,” commented Phil Ager, Managing Director of CEC.

“As one of the key players in the energy sector, we wanted to be one of the first to commit to this strategy and what better time to do it than to mark our 40^th anniversary.”

He continued: “Our experts have so much knowledge and experience, we decided to take our commitment to the next level by packaging this expertise into an e-book and short animation.

“All sectors need to do more and there is legislation on the way that will make reporting and reducing carbon mandatory. We want to make sure our clients are in a position to comply with the new rules.”

Control Energy Costs is launching its e-book on Earth Day (April 22^nd) and it will be available via cec.uk.com/greenenergy.

The guide covers five main sections, ranging from the different types of renewable energy you can choose and the risk of falling for ‘greenwashing by companies’ to engaging employees, Government legislation/schemes and how you can carbon offset.

It also tackles the importance of having an ESG (Environmental, Social and Governance) framework in place, which could deliver companies a commercial and competitive advantage when tendering for new work.

“For businesses that lead the way in transitioning to a low carbon economy, there can be significant opportunities,” added Phil.

“Working towards Net Zero makes good social and commercial sense and we are ready and waiting to support existing and new customers to start their journey.”

Control Energy Costs offers an initial ‘no cost, no obligation’ audit review of both current and historic energy arrangements, looking for opportunities to secure retrospective refunds and rebates, reduce non-commodity/third party charges and, where appropriate, advise on future energy contracts.

Other core activities include bespoke flexible purchasing and hedging strategies for larger clients, siteworks and project management via a dedicated CEC solutions team, energy consumption, budget and forecasting tools to help clients to drive down energy usage, alongside traditional bill validation and invoice resolution services.

For further information, please visit cec.uk.com/greenenergy or follow @CECchat on twitter.

Industrial group signs new energy deal to support expansion plans

Control Energy Costs — 07/10/2019

One of the West Midlands’ leading industrial groups has set out exciting plans for expansion after enjoying strong trading results over the last twelve months.

Rubery Owen, which was established over 130 years ago in Darlaston, has announced an investment in a new facility at its Land Rover and Hyundai dealerships in Aberystwyth and a testing laboratory for its material testing division in Brierley Hill. The latter will specialise in bespoke materials testing across a variety of industry sectors.

This growth is throwing up a number of new energy management challenges and that is why the firm decided to tap into the expertise of Control Energy Costs.

CEC worked with the senior management team to provide a complete review of its current and future usage, exploring the possibility of bulk buying as a group whilst also identifying solutions to bespoke issues at individual companies.

It is a decision that is already paying off, with over £16,000 of annual costs already saved, with the potential of more to come as new energy management techniques are introduced.

“Our seven businesses are all growing and with that expansion comes an increase in the amount of energy we use,” explained Kevin McGuigan, Group Finance Director at Rubery Owen.

“Traditionally, we were purchasing it separately for each division, but quickly realised that this wasn’t the best approach and that we should really be looking to buy as a group. In order to do this, we wanted to work with a partner we could trust and that’s where Control Energy Costs came to the fore.”

He continued: “Our existing broker looked a more cost-effective option, to begin with. However, it soon became clear that after a comprehensive review and complete transparency on the deals we could see that CEC could save us £16,000 immediately."

“With the increasing cost of power, it is important that we are able to access competitive energy prices. In addition, having an expert on board allows us to obtain the best economies of scale.”

Rubery Owen, which records annual sales of £55m and employs 187 people, operates seven companies, including Merlin Power Characterisation, Phoenix Materials Testing, Rotech Laboratories, Rozone, Rubery Owen Holdings, Shukers, and Techtron.

The group covers a diverse range of markets, from motor retailing, materials testing and the design and manufacture of bespoke testing machines to battery management technology, innovative cleaning solutions and the formulation and blending and packing of chemical liquids.

With energy costs rising, CEC was introduced to the company and immediately set about collating all of the disparate supplier information and creating a complete overview of the portfolio.

There were a lot of suppliers involved and various contract end dates, with the majority of the divisions simply dealing with renewals a month or so before renewal.

A group tender was created to ensure Rubery Owen was tendering competitively and all end dates were aligned, making the firm a far more attractive proposition to the supplier.

Liam Conway, Head of CEC Direct, continued: “Our success with manufacturers comes from our ability to get under their skin and understand current and future energy requirements. We can then use our expert brokers to come up with the best possible deal, with transparency being key to all discussions."

“Rubery Owen was a prime example. At first, it appeared a different broker was a better option, but when we completed a forensic check the company could actually save £16,000 in its first year.”

Kevin McGuigan concluded: “I’m conscious there can be a lot of smoke and mirrors with the energy sector so the fact that CEC could demonstrate its transparency was a key reason why we went with them."

“Going forward, we will be using its knowledge to help us gain the best rate for the new testing facility in the Black Country, which will include testing at high-pressure, high-temperature and gaseous environments.”

Control Energy Costs work with more than 900 retained clients across the UK, with its team of analysts providing an initial, no-obligation audit and then working with the customer to identify existing issues and opportunities to reduce bills, whilst advising on improving future procurement strategies.

For further information, please visit www.ruberyowen.com or www.cec.uk.com

Net zero buildings

Control Energy Costs — 20/07/2021

s the UK works towards its target of achieving net zero emissions by 2050, we take a look at the part that buildings play.

In the context of architecture and business, a net zero building (NZEB) is one that has no net carbon emissions during its construction and operation

What does a new build need to be a net zero building?

The optimisation of building energy efficiency typically considers the following, which work together to ultimately reach the goal of net zero energy:

Lighting
Walls and roof
Glazing
Heating, ventilation and air conditioning
Building usage and employee behaviours

An air-tight, highly insulated building envelope is an integral part of the NZEB strategy. Insulation represents significant potential energy savings. For example, quality insulation, used throughout the building interior and exterior construction, can help buildings realise heating energy savings of up to 70%, reducing dependency on fossil fuels.

To achieve high performance buildings, complete building energy modelling and thermal analysis are needed to help architects, designers, specifiers, contractors, building owners and energy consultants maximise efficiencies. A well planned and integrated team approach is typically necessary to achieve NZEB.

How can an old or existing building become net zero?

An existing building is, as you would expect, a more challenging prospect than a new build.

There are three main aspects, with a combination of all three likely in most scenarios:

Use of renewable energy and /or onsite generation
Carbon emission removal
Building refurbishment and/or retrofitting to create greater efficiencies

Moving to 100% renewable energy is the ideal step forward. To complement, or perhaps replace, bought in renewable energy, it may be possible to implement onsite clean energy generation. This will depend on the practicalities of the building itself and may be challenging in older buildings.

The second approach is to neutralise emissions, by removing carbon dioxide from the atmosphere through carbon capture technologies and natural carbon sinks such as oceans and forests. However, climate change experts believe we cannot plant enough trees fast enough for this to be the solution on its own.

About 19% of the UK’s emissions come from heating buildings – 77% from homes and 23% from commercial and public buildings. Therefore, retrofitting/refurbishing existing buildings to make them more energy efficient is critical.

For refurbishment/retrofit projects, there is a strong argument that efforts should be first focused on improving the fabric of buildings to reduce energy demand, for example improving insulation, heating and cooling systems, as well as moving to renewable energy.

The benefits of a net zero building

If you are looking to make your business net zero, there are a number of advantages to focussing on your premises, including:

Excellent levels of insulation minimising heat loss and reducing costs
Clean energy generation and potential revenue from integrated solar PV roofs
Affordable construction with zero running costs for new builds
Airtight construction
Negative carbon emissions asset rating

And don’t forget to install electric vehicle charging points for your employees!

Achieving net zero

If you would like to learn more about renewable energy and net zero, you can download our free “Guide to green” eBook.

And you can always give us a ring on 01737 556631 to discuss your energy requirements, including EV charging points and moving to a renewable energy contract.

Another Energy Refund Secured In The First 12 Months Of Working With Control Energy Costs Ltd For Salop Design & Salop Powder Coating

Control Energy Costs — 24/05/2017

Christopher Greenough, Commercial Director of Salop Design & Salop Powder Coating in Shrewsbury invited Liam Conway of Control Energy Costs Ltd (CEC) to visit their new 630 Tonne progression press and to complete the paperwork to secure yet another energy refund.

Greenough commented I now know Liam well after working with him on our energy requirements for the last twelve months, theyre a very active MiTM Patron, and they are providing an invaluable service to members and the wider manufacturing community. As President of MiTM Ive been delighted with the work theyve done for us in securing a number of energy refunds as well as managing our ongoing costs

Conway confirmed the success with Salop by saying Our business is about continually analysing energy costs for businesses, its great when we find an opportunity to secure a refund or reduce costs immediately and then in the case of Salop we highlight further refunds down the line

As ever, we're delighted to have a chat with other MiTM members to see if we can help them too!

LiamC@cec.uk.com or 07501221728

TCR - what does it mean for business energy?

Control Energy Costs — 09/11/2020

It has come to our attention that there are several energy brokers out there who are suggesting the Targeted Charging Review (TCR) will lead to an increase in energy costs of 25% for UK businesses.

Positioning themselves as doing businesses a favour by drawing TCR to their attention, they are using it as a means to scare businesses into signing new energy contracts, leading them to believe that by doing so they will avoid a big increase in costs.

This simply isn’t true.

The reality is that at this stage the financial impact of TCR is unknown. All we know is that the changes will affect different customers in different ways (some will benefit, some will lose) and any claim that TCR will increase electricity costs by 25% across the board is very misleading.

Once the full scope and the impacts are known, we will ensure that we communicate these clearly and concisely to our clients and those who receive our newsletters.

You can find out more about the Targeted Charging Review (TCR) by downloading our informational Pdf here.

If you are approached with sales tactics that are at best misleading and at worst a lie, make sure ensure you undertake due diligence. As is often the case, pressurised sales tactics generally mean a high reward for the salesperson involved.

You can find out more about working with an energy broker by downloading our free eBook guide here.

Been invited to a presentation on flexible energy contracts?

Control Energy Costs — 29/02/2024

It is one thing being able to explain what a flexible energy contract is but do the people who will be managing arrangements for you really know and understand how to make best use of such a product to take full advantage of what they can bring to your business?

Here are some simple questions to ask…

1. What makes risk management right for my business?

2. How do you know when the supplier offers a price for a hedge that it is reflective of current market prices?

3. If you choose cash-out, what is the best strategy to manage shape fees?

4. Having just one person managing your flexible energy contract is a huge risk - what support do they have to cover holiday/sick? Not having cover could lead to missed opportunities and a lack of expert continuity.

5. The landscape of energy management is complex and dynamic. Question them on their background, knowledge, and experience. Check their track record in terms of performance and question whether they have the breadth of expertise across the team to reassure you that your portfolio is in safe hands?

6. What is your platform for position reporting and communication of executed trades in order to help me report and track my position?

7. Effective communication between you and the people managing your flexible energy contract is essential for you to make informed decisions about your energy contracts. They should address your questions and discuss your concerns with transparency, in turn providing you with a better overall understanding of the energy market.

For more complex questions, you could ask:

1. How do you sell or unwind existing hedge positions in order to maximise the benefit of the product?

2. How many group purchasing baskets do you have under management, and what strategies do you deploy on each?

3. What is your commission structure for delivering risk management, on a cost per kWh basis?

4. What is best, volume tolerance or cash-out? Why?

5. What is best value – forward hedging or day ahead?

6. What is your definition of risk management?

7. What controls do you have in place to prevent rogue trading?

8. What controls do you have in place to mitigate market gapping?

9. What are the technical parameters of your trigger points?

10. How do you identify resistance and support levels and how do you differentiate between the two?

11. How far out is the most you should hedge?

If you would like our answers to each of these questions, feel free to get in touch and arrange a discussion with one of our Risk Managers Nick.Heng@cec.uk.com or Mike.Stafford@cec.uk.com

Control Energy Costs expands the business development team

Control Energy Costs — 02/07/2020

Control Energy Costs has taken on two new team members: James Malin and Andrew Stoker.

James started with the team in January with Andrew joining in June.

James Malin

James previously worked at Npower as an Acquisition Account Manager for three years with a focus on business energy sales. He is really looking forward to offering a more consultative approach and will be largely focused on the West Midlands and the South West areas. He will be working with members of Black Country Chamber of Commerce and Made in the Midlands.

James brings a wealth of experience in the energy sector as he has been working in the energy industry for more than six years.

James feels he has adapted well to working from home and his role so far has mostly been telephone-based sales so there is synergy with his previous role which was mostly telesales based. He is, however, every much looking forward to face-to-face networking but feels in the current climate it could be a while before he is able to do this.

Hobbies include sports such as football and golf, although more recently he has mostly been playing golf as this is a more socially distanced sport!

Andrew Stoker

Andrew has been in the energy industry for several years having worked at Utility Team and World Kinect Energy Services. He was attracted to working at Control Energy Costs by the professionalism and depth of knowledge of the team, as well as the wide range of additional services they offered.

Andrew will be covering the Yorkshire and North West areas with his networking focusing within these areas and with Made in Yorkshire members.

Andrew has been impressed with the support offered by Control Energy Costs and is looking forward to meeting the team and visiting the head office in Redhill once business returns to normal.

Andrew is also into sports with rugby, cricket, and golf on the list of hobbies.

Both Andrew and James are having regular catch ups online as a team with Liam Conway who heads up business development at Control Energy Costs, and the whole business development team us currently operational from home.

Join the queue: £200bn worth of renewable projects on hold

Control Energy Costs — 04/09/2023

UK climate targets are currently threatened by the National Grid’s lack of capacity, causing £200bn worth of projects to be stuck on hold as they wait to connect to the UK’s electricity system.

The British are renowned for their queuing and the story is no different when it comes to renewable projects, as Britain is suffering with the longest backlog in Europe.

Around 40% of these have a connection wait of at least a year, delaying these high-value investments.

While it’s good news that so many renewable project applications are being made, the demand is too high for the grid, which was originally built when just a few fossil fuel power plants required a connection each year.

Ambitious targets

In addition to achieving net zero by 2050, the UK has also set an ambitious target for 100% of its electricity to be produced without carbon emissions by 2035.

There have been large strides made toward the green energy transition as a Government report revealed that nearly half of the country's electricity was net zero in 2022.

Much of this has been the result of the hyperdrive for wind and solar power. However, it’s predicted that five times more solar and four times as much wind is needed than is currently produced to achieve this target.

Pressure on the grid

Some projects have been quoted a 10-15 year wait to be connected, far exceeding the 2035 electricity target.

To manage the demand, the National Grid is tightening its criteria, ensuring that only projects with significant potential are able to join the queue.

Substantial restructuring of the grid is also required and permission has been granted from Ofgem for the National Grid to raise an additional £20bn over the next 40 years from household bills, however the impact is expected to be minimal.

Emma Pinchbeck, CEO of Energy UK, has suggested that the grid would need to grow its electricity sector by two to three times its size over the next decade. She states that the system operator is confident that they can absorb the amount of renewables that they’re aiming to put on the system over the next decade.

However, while she believes that it is physically possible, funding for grid infrastructure is highly regulated in the UK and much of this regulation is not currently fit for purpose.

Government action

Renewable energy developers have argued that the Government has been negligent in their vision for modernising the network.

According to David Kipling, chief executive of On-Site Energy, “[The government has] been speaking about climate action for over a decade now, so you would have to assume that they knew what would be required.”

The Government is planning to announce a new action plan to accelerate connections later on in the year.

Miss-sold energy contracts

Control Energy Costs — 17/04/2020

The news recently that small businesses are being ripped off by rogue energy brokers comes as no surprise to us here at Control Energy Costs. We are currently helping several businesses who have found themselves miss-sold a deal that has been poor value or misleading in some way.

Miss-sold energy contracts

There are several ways that rogue energy brokers position their offer to entice you in.

Pass-through contracts

These kinds of deals look great when you take them at face value, a low kWh price is offered by the broker. But the smokescreen fades quickly once you receive your first bill because these deals don’t include all the additional fees, charges and levies.

These fees charges and levies make up a significant portion of your bill as you can see from the diagram below, so the great deal you were offered is not what you end up getting.

When these types of deals are sold, the broker is careful about how they word their sales pitch over the phone, and they are often keen to seal the deal quickly. If you are called by a broker keen to sign you up immediately, we would recommend that you take some time out to do your due diligence and ensure you aren’t being offered one of these pass-through contracts.

The undisclosed commission contracts

If your energy broker isn’t being transparent and disclosing their fees, the chances are you could be in for a nasty surprise. Unfortunately, we frequently see businesses who have been paying significant broker fees that they weren’t made aware of at the time of signing up. Any broker who isn’t honest and transparent with what they are being paid is likely to be charging you over the odds.

Wholesale costs with huge commission built in

Over the past six months, there has been a significant decrease in wholesale energy prices. Gas has fallen approximately 26% and electricity has fallen approximately 16%. Unscrupulous energy brokers will be keen to offer what looks like a great saving based on what you are currently paying, but in fact, they’re building in large commissions.

If you feel you have been misled by your broker

We are currently assisting several clients who have been mis-sold a contract by their previous energy broker, so if you think you might have been mis-sold an energy contract, or that you are overpaying for your energy why not get in touch with us today.

Open letter to Ofgem

Control Energy Costs — 17/09/2020

Dear Ofgem

In response to your publication 29th July 2020 “Fairer energy deals for microbusinesses”

We have operated as a third-party intermediary (TPI) in the energy sector for many years and have always promoted and supported transparency in supplier commissions. Indeed, we recently published an eBook to highlight the tactics often used by rogue energy brokers and the considerations businesses should have when they are looking to engage the services of an energy partner.

Whilst plans that OFGEM have unveiled are a welcome step in the right direction, our concern is the general lack of protection for all businesses (not just micro businesses) that get caught out by unscrupulous energy brokers who convince customers to provide an authority letter that allows them to accept supply contracts on their behalf – so called level 2 authority letters.

These brokers then corroborate with preferred suppliers to set up energy contracts with unfavourable terms, typically including a huge commission for the broker and higher margin for the suppliers in question. It is also common practice for some suppliers to offer hefty up-front commissions at the point a supply contract is signed as an incentive to bring them new business.

In these circumstances, it is both broker and supplier who are at fault. No supplier should accept a contract that has been signed by a third party. Furthermore, up-front commission payments drive the wrong behaviours within energy broker and energy supplier sales teams as they incentive carelessness and a disregard for customer care.

We feel it is time for OFGEM to again review the introduction of a TPI code of conduct or gold standard accreditation that both energy suppliers and energy brokers could sign up to. I feel confident in saying that any TPIs who provide a genuine service and charge a fair commission for the service they are providing would welcome this.

For TPIs and suppliers willing to commit to a gold standard accreditation, all parties would only ever process supply contracts that have a customer signature on them. The key is to provide businesses with re-assurance that they are working with a trusted advisor who provides complete transparency on the service they are providing, together with what and how they are being paid.

The low carbon economy

Control Energy Costs — 28/01/2020

The good news is that 2019 has seen carbon emissions falling, with 3,523 coal free hours recorded by the National Grid so far this year. It has also been noted that 2019 saw the first week that the UK didn’t generate electricity using coal since 1882.

This, coupled with the 37% increase in energy from renewable sources for 2019 so far means that rapid progress is being made.

The low carbon economy is booming

The low carbon economy is defined as an economy based on low carbon sources that have minimal input of greenhouse gases, specifically carbon dioxide.

The UK has decarbonised its economy faster than any other G20 country. Having focused so far on primarily decarbonisation of the power sector, it now needs to relook at how it can lower carbon emissions through building design and transport, including freight and rail.

Growth in the low carbon sector

Turnover in the low carbon sector was up 7% in 2017, meaning that growth has been three times higher than the UK Gross Domestic Product. The incentive of higher returns has led to this being a key area looked at by fund managers when assessing the value of a company and its shares.

The low carbon renewable energy economy has grown from £41.7 billion in 2016 to £44.5 billion in 2017 and continues to outpace GDP.

The Confederation of British Industry predicts that the low carbon economy could

Grow by 11% a year between 2015 and 2030
Be worth an estimated £170bn in exports by 2030
Deliver £8bn in savings by having a smarter, more local and flexible grid with cheaper energy storage

There are six main groups that the low carbon sector businesses fall into; these are:

low carbon heat
low carbon electricity
low carbon services
low emission vehicles
energy efficient products
energy from waste and biomass

What is driving growth in the low carbon sector?

Consumer awareness and a strong movement for change, as well as the drive to innovate and ensure that the UK is cutting edge when it comes to low carbon technology and product development, is ensuring swift progress is being made.

Good or bad publicity can make or break a company; this means that businesses are ensuring Corporate Social Responsibility is a priority and their environmental impact is reduced so that they can continue to highlight this, not just to consumers, but also to investors and the media.

This global awareness and campaigning have seen governments put under immense pressure to implement changes in policy and legislation. The UK has become the first major economy to pass laws to reduce emissions and be net zero by 2050. Net zero refers to having a balance between emissions produced and emissions removed from the atmosphere.

Control Energy Costs

Control Energy Costs — 15/07/2020

LNG and gas prices

Control Energy Costs — 26/05/2022

We hear about LNG often in the news, but what is it?

Liquified natural gas, known as LNG, is natural gas that has been cooled down to liquid form.

It is cooled for the benefit of safety, ease of transportation and non-pressurized storage. Because some natural gas resources are in remote locations, transporting gas long distances can be both costly and impractical, which is why the LNG process is so useful.

Cooling gas down to –260° F (–162° C), changes its state from a gas into a liquid that is 1/600th of its original volume. This significant reduction allows it to be shipped safely and efficiently around the world aboard specially designed LNG vessels.

Once a ship arrives at its destination, LNG is transferred to a re-gasification plant where it is heated and returned it to a gaseous state. From then, it is distributed through pipelines for use by homes and businesses in the same way as any other form of natural gas.

LNG imports to the UK

In order for LNG gas to be received by a country, it must be docked at an LNG terminal and unfortunately, there are very few of these terminals in areas where they are most needed – North Europe. One way around that problem is for the LNG to be imported to the UK and distributed throughout northern Europe through existing pipelines.

In the UK we have three LNG terminals. However, there are only two main pipelines in the UK that are used to pump gas back into Europe, and they have been operating at maximum levels, pumping gas as fast as they can, but not fast enough. So, in effect, the UK has lots of gas coming in, but not enough of it can get out through to Europe.

The result of this is the UK day ahead market for wholesale gas (what you would pay today for gas used tomorrow), being lower than it has been for 18 months.

What is the catch and why are gas prices still high when looking at supply contract options?

Well, energy companies base their prices on futures markets (years ahead), rather than day ahead. So, although day ahead gas prices are at the lowest they have been in months, when you look at futures markets, prices are still extremely high with no sign of any real change.

Our carbon neutral journey with Auditel

Control Energy Costs — 08/09/2023

Control Energy Costs are delighted to be partnering with Auditel to help them on the road to becoming Verified Carbon Neutral compliant with ISO14064.

Our Production Director, Chris Ellis, comments. “Control Energy Costs are utility procurement specialists providing businesses with the tools to make informed purchasing decisions.

We have been guiding clients for over 40 years with our impartial, honest and transparent advice on how to buy and use less energy and water. From our two offices, Redhill and Worcester, Control Energy Costs support all manner of business from large industrial users to high street chains.

We have been appointed by Chambers of Commerce and trade associations to work with their members to ensure they are benefiting from the optimum market rate for all utilities.

We offer a full invoice validation service, along with energy consumption reporting and monitoring via our client portal. Our range extends to site works (new installations, metering etc.), compliance (ESOS, SECR etc.) and renewable energy projects such as solar PV. It is a comprehensive offering designed to meet businesses financial pressure and environmental accountability for businesses."

Why are we going Net Zero?

"Control Energy Costs are strong believers in reducing carbon emissions and understand the need to identify our footprint and impact. Our key objective is to reduce our carbon emissions and become carbon neutral once this exercise is complete. Our carbon reporting will be compliant with ISO14064.

Most businesses are aware of their environmental responsibilities so we would like to extend this to our clients.

We will be sharing our experience with them and encourage them to take a similar path.”

Huw Williams Principal Carbon Accountant & Verifier, Auditel:

"Working with Control Energy Costs on their carbon management project is an absolute pleasure. The team have fully engaged in the process and have shown the highest level of commitment to achieving a quality carbon footprint report across their entire scope 1, 2 and 3 emissions."

New eBook launched - a guide to working with an energy broker

Control Energy Costs — 24/08/2020

This eBook has been written as a guide to help businesses considering working with an energy broker. The guide uncovers some of the key things to look out for, questions to ask and research you should undertake.

You can download a free copy here:

https://cec.uk.com/information-hub/tpi-ebook

Will fracking get the green light as energy prices stay high?

Control Energy Costs — 22/07/2022

Hydraulic fracturing, commonly known as fracking, is a technology that can extract natural gas and oil from shale rock by drilling into the earth and directing a high-pressure mixture of water, sand and chemicals at a rock layer in order to release the gas inside.

How fracking works

The first part of the operation begins by drilling straight down into the earth and then turning the drill horizontally to run for miles underground to reach the shale rocks where molecules of gas are trapped inside.

After this, a liquid called ‘slick water’ is pumped in at high pressure which forces the cracks in the rock to widen. With the rock broken up, the gas is released and flushed all the way back up to the surface.

Why is fracking controversial?

Fracking is controversial because of the potential impacts, including:

Earth tremors cause by the injection of fluid at high pressure into the rock
Contamination of groundwater
Methane pollution and its impact on climate change
Air pollution impacts
Exposure to toxic chemicals
Blowouts due to gas explosion

Fracking also uses huge amounts of water, which must be transported to the site at high environmental cost.

The UK Government position

Fracking was stopped in the UK in 2019 due to the concerns from opposing green groups and local concerns over the earth tremors. However, there have been recent calls to reconsider the ban of fracking due to the increase in the cost of energy.

The Government has said "all options" are on the table as it tries to end UK imports of Russian energy because of the conflict in Ukraine, combined with gas supply shortages.

Business Secretary Kwasi Kwarteng has asked the British Geological Survey (BGS) to consider any changes to the science around fracking.

Fracking firms claim the move is a "tentative first step" to overturning the ban and "exploiting [the] potential" of shale gas.

But other MPs and campaigners have warned against a change in direction. Labour re-stated its opposition to fracking in March 2022, when it published its energy policy.

There have been no further announcements about fracking in the Government's energy strategy.

We will watch this space!

Added Pressure On The UK Electricity Market

Control Energy Costs — 15/09/2016

UK wholesale electricity prices for the day-ahead market increased dramatically as the heatwave in some areas of the country helped push up the demand for power.

The price has jumped from around £40 per megawatt hour to almost £200 per megawatt hour, the most expensive in a decade.

The increase in demand comes at a time where there is decreased output from wind power, with a number of gas and nuclear stations offline.

The day-ahead market is the price charged by generators to put power into the network grid. Suppliers buy a percentage of their power on the day ahead market which in turn is available to flexible end user purchasers if they operate in this way. Electricity prices on the forward curve were far less influenced by the spike.

On occasions where the UK market is tight we can usually draw capacity between our connections with France; however there are issues with this currently.

It is worth noting the day ahead price actually exceeded the £92.50 per MWh subsidy deal proposed for Hinckley Point.

US gas imports will be doubled over the next year

Control Energy Costs — 26/01/2023

Since Russia imposed restrictions on European gas supply, the UK has been hit by soaring energy prices. Increased demand and energy shortage fears caused European nations to overspend on Liquefied Natural Gas (LNG) imports last October, leaving hundreds of LNG ships lingering along the coast of Europe, unable to unload their cargo.

Record-breaking LNG imports

It's no surprise that the UK’s Grain LNG terminal – Europe’s largest LNG receiving terminal - recorded their busiest ever year in 2022, with a 60% rise in shipments compared to 2021. Welcoming a total of 91 ships, the terminal saw the highest number of cargo arrivals since 2011.

Last month, Prime Minister Rishi Sunak announced plans to double US imports of LNG to 9-10 billion cubic metres; approximately an eighth of the gas the UK uses every year.

Together, the UK and US are aiming to stabilise energy prices, strengthen energy security and support a stable energy transition to meet the 2050 net zero target. Both countries will also increase collaboration on developing new nuclear and green energy technologies.

Lifeline or injury?

While meeting demand, increasing reliance on LNG could be counter-productive, as the production and transport of LNG causes up to ten times the carbon emissions compared to pipeline gas. Additionally, the UK has limited gas storage capacity, so any excess gas will have to be exported. Some are even doubting whether US gas supply can adequately replace the substantial supply the EU was receiving from Russian imports.

The cost of US LNG imports has also doubled since late 2021. Costing an average of almost $4 billion a month, last year’s expenditure was significant. There is hope, however, that the substantial cost of LNG will accentuate Europe’s high dependency on Russian imports and accelerate the transition to renewables.

Another consideration is the premature fall in gas prices, a situation that had not been forecast to occur so early on in the year and there are predictions that prices will fall further as we progress through the year. There is no certainty, however, that they will remain this way - global tensions could drive wholesale prices back up again.

Since the majority of this US gas is sourced from fracking, increasing LNG imports significantly hampers efforts towards global warming. Added to the high cost and the lack of confidence that supply will even meet demand, it is most likely adding further injury to the energy crisis rather than offering a lifeline.

How the Energy Bill Relief Scheme affects your energy bills

Control Energy Costs — 24/10/2022

The Energy Bill Relief Scheme has been in effect since 1^st October 2022, offering discounted wholesale gas and electricity prices to businesses until 31^st March 2023.

When will the discount be applied?

With late changes made to the support initiatives, there is a possibility you may not see the expected discount appear on your October energy bills, as energy suppliers try to keep up with evolving details to ensure the discount is correctly applied. In the meantime, we would advise you to pay any outstanding invoices - discounts due will be backdated.

Energy bill components

Energy bills are comprised of several components which can be broadly grouped into three areas. These include:

Energy cost
Distribution and transmission charges
Green taxes and levies

Historically the energy element – also known as the commodity element – represented approximately 40% of the overall bill. With the huge rise in energy costs during the past year, the energy element will now typically represent around 75% of the overall bill. This is the only component that will be discounted by the scheme.

The level of discount you will see applied to your bill will depend on the market position at the time you signed your supply contract. The government have published a table https://www.gov.uk/government/publications/energy-bill-relief-scheme-discounts-for-fixed-default-and-variable-contracts

Many businesses have been left very confused about how the Energy Bill Relief Scheme will impact their energy costs and the level of support they will get. If you need help, get in touch.

An energy partner you can trust

Be vigilant of offers that appear to be providing a much better deal than others. Sadly, there are energy brokers out there who intentionally leave out components within their evaluation to make their proposal more appealing to cash in on the confusion.

Remember, if something seems too good to be true, then it usually is.

If you want to work with an energy partner that you can trust to provide an honest opinion on options for your business, why not get in touch with us?

We operate with full transparency, working with you to compare proposals from different providers on a like-for-like basis and making sure there aren’t any hidden charges or terms which could be to your disadvantage.

We will make sure you know exactly how your bill is broken down, and how much of what you are paying is for the services we provide.

World’s largest solar farm could solve Europe’s energy crisis

Control Energy Costs — 29/06/2023

Russia’s invasion of Ukraine has accelerated the urgency for Europe to become less dependent on Russian gas supplies. As a result, the drive for renewable projects and innovative technologies has never been higher.

Thanks to the development of the world’s largest concentrated solar farm, Noor Ouarzazate, Morocco is leading this international agenda and could be a vital lifeline for the energy crisis.

About the project

Noor Ouarzazate is a 580MW solar power project, located 10 kilometres north of the Moroccan city of Ouarzazate.

The development of the project occurred in three phases in which separate but co-located power stations were built. Construction began in 2013, and the first phase of the project was commissioned in 2016, a 160MW CSP plant dubbed Noor I. A 200MW plant (Noor II) and 70MW plant (Noor III) were commissioned in 2018, along with a fourth station (Noor IV) which uses photovoltaic technology. This works by directly converting sunlight into electricity using thin sheets of semiconducting materials.

How does it work?

The project operates using Concentrated Solar Power (CSP) technology. This technology harnesses solar power by the use of mirrors to reflect, concentrate and focus natural sunlight onto a specific point.

As the largest solar complex in the world, Noor Ouarzazate uses half a million curved mirrors to direct sunlight towards tubes of synthetic oil, which convert it to vapour. A turbine uses the vapor to generate electricity, providing power for 1.3 million people. As CSP is able to store the heat generated, it can be used during periods of minimal sunlight. The mirrors now span over 3,000 hectares (11.6 sq. miles).

A European lifeline?

With its solar panels generating three times more energy than Europe’s and the abundant space to house them, Morocco’s solar complex is the frontrunning solution to alleviating Europe’s energy crisis.

Moroccan founder, President & CEO of Gaia Energy, Moundir Zniber, believes that “Morocco represents the best opportunity to get the European continent away from the dependency it has today on Russian gas.”

Morocco is now striving to generate 52% of its electricity from renewable sources by 2030. The plan is for a large proportion of this electricity to be exported to Europe via undersea cables.

Eager to tap into this renewable energy goldmine, British energy start-up, Xlinks, has already made plans to build an undersea electricity cable from Morocco to the UK.

The cable is projected to cover 2,300 miles to southwest England. From here, it is hoped that it will supply 8% of Britain’s electricity and power 7 million homes by 2030.

However, Morocco still currently depends on imports for 90% of its energy needs, most of which is generated from fossil fuels. According to Energy Transition Minister Leila Benali, renewable energy has been hampered by global factors, “The world is just coming out from a historic pandemic, total dislocation of supply chains and value chains - also affecting renewable energy, including the way we trade solar panels and wind turbines."

The country will need to expand its solar farms if it is to meet both its ambitious renewable energy target and be able to outsource supply to Europe.

Control Energy Costs launches new video for Made In Group Members

Control Energy Costs — 17/07/2020

As Patrons Control Energy Costs launched a new video aimed at the Made in Group Family, we sat down with the team to talk about the range of four core services supplied by the company that are accessible for all of our members across both regions.

The group, which has secured in excess of £1m refunds and on-going tax relief for over 140+ Members of the Made in Group has created a new video designed specifically for members of both regions, with the explicit aim of showcasing four of the key offerings that they can help members with.

Speaking to Control Energy Costs about the four principles explored in the video, the group explained what each service is, saying, “We offer four core services, firstly forensic cost recovery, this looks at your previous energy invoices and usage going back six years to ensure you have not paid for the energy you have not used.

If we discover anomalies, we recover the money owed to you. This also covers forensically checking manufacturers ability to secure refunds and relief on taxes and levies, and this can uncover significant refunds and ongoing cost savings.”

Their second service, dynamic energy procurement, looks at your existing supply contracts and energy usage. “We then present the options that best suit your business needs. This includes both fixed-price contracts, and if we feel it is appropriate, then we can offer wholesale access with the strategic advice of our market analysts so that you can purchase flexibly taking advantage of price fluctuations. We can also offer 100% renewable energy options if this is something you are interested in.”

The company then went on to explain the final tour principles, CEC Solutions and Invoice Resolution. “Our third service is CEC solutions, and this incorporates a vast range of energy-related services such as metre fitting, data on consumption, including governance and legislation reporting. We can also help with energy-saving projects and electric vehicle charging installation.

While the fourth is offering invoice resolution, we check all supplier invoices against consumption data to verify you are being invoiced correctly.”

To find out more, contact Control Energy Costs on 01737 556631 or visit our website at cec.uk.com

Sustainable aviation fuel

Control Energy Costs — 22/09/2022

The aviation industry is one of the largest contributors to greenhouse gas emissions and one of the toughest sectors to decarbonise.

Corporate travel is a huge part of this, accounting for a third of aviation emissions.

Growing interest in sustainable aviation fuel, which offers an 80% lifecycle emissions reduction compared to conventional fuel, is a significant step forward to a greener aviation industry.

What is sustainable aviation fuel?

Sustainable aviation fuel (SAF) is fuel derived from sustainable feedstocks such as waste products, biomass or cooking oil.

SAF recycles carbon as opposed to increasing it, effectively closing the carbon loop. There are even some emerging SAF pathways that have a net-negative greenhouse gas footprint. It is also a ‘drop-in’ fuel, meaning it can be mixed in or replace traditional jet fuel without having to alter the aircraft or infrastructure.

In addition to carbon reduction, SAF contains fewer impurities such as sulphur, maximising the reduction of sulphur dioxide and particulate matter emissions – emissions made up of small liquid droplets and solid particulates suspended in the air.

Boosting the demand

Regulatory ambition is propelling the need for sustainable fuel in this industry and we have been seeing a gradual decline in UK aviation emissions.

Emissions decreased by 3% in 2019 compared to 2018, and in 2020, they plummeted by 60% from the resultant travel restrictions of the Covid-19 outbreak.

While there is improvement, demand for SAF must increase to make significant headway. Part of this challenge is convincing fuel suppliers that SAF is worth the investment.

Government action

In July 2022, the Government imposed a SAF mandate in the form of a greenhouse gas emissions reduction scheme. This demands that by 2030, at least 10% of jet fuel must be SAF - it is currently less than 0.1%.

SAF has received controversy, as some methods of generation are extremely detrimental to the environment, for example, burning large quantities of biomass or waste. The SAF mandate details that SAF derived from organic compounds like hydro processed esters and fatty acids will be capped, ensuring that environmental impact is minimised.

The solution to greener aviation?

As aviation is almost completely dependent on fossil fuels, it is crucial that the aviation industry mitigate their impact on the climate crisis. Business travellers in particular, must collectively eliminate this substantial component in their carbon footprint, to ensure we meet the net zero target by 2050.

Currently, SAF is a more costly alternative to conventional fuel which is preventing wider uptake from airlines. Boosting demand is required in the short-term to ensure lower costs in the future.

However, it is an attractive alternative to fossil fuels. Eradicating the issues of fluctuating costs and supply and demand associated with crude oil, it also offers a degree of energy security, as it is not geographically limited like fossil fuels and a large range of SAF feedstocks can be generated around the world.

To have a substantial impact requires effort from all parties involved: travellers, airlines, corporations and fuel suppliers. Other carbon-reduction strategies across the industry also need to be accelerated, including more efficient aircraft design, smarter operations and the development of future technologies like electrification of aircraft.

Still no details on Government energy bill support for business

Control Energy Costs — 16/09/2022

On 8^th September, the Prime Minister announced a cap on household energy bills, as well as “equivalent support” for business customers, but only for six months. No details were provided on what this would entail.

On 14^th September, there was a further announcement to say that details will be confirmed next week, but that the precise mechanism and amount of support may not be finalised until November, with support backdated to 1^st October if necessary.

What does “equivalent support” mean?

We think that one of the reasons for the delay in announcing details of the scheme is the challenge the Government is facing in developing a business energy support package that is equivalent to the household price cap.

But a cap on the unit price of x pence for gas and y pence for electricity simply would not work in the business market. It is far more complex than household energy, and whilst finding an equitable and workable solution to support businesses is essential, it is extremely challenging.

There is also the question of how much any scheme would actually end up costing the taxpayer to take into consideration.

Has the announcement caused more chaos?

In a nutshell, yes. It has added an additional layer of uncertainty for businesses.

Contract renewals were already proving very difficult for many businesses, especially as a large proportion, perhaps as many as two thirds, renew in October.

Some energy providers have been refusing to accept new clients and many businesses have been holding out to the last minute to agree a deal, in the hope that energy prices will improve. This is leaving so many at risk of being forced onto punitive out of contract rates.

That raises the question as to whether the Government scheme, even when backdated, would cover the additional cost of those out of contract rates.

The announcement with no details, followed by a further announcement a week later saying details will be another week – or possibly not till November – has generated yet more chaos as businesses are even less certain than before about the best option, as they wait in hope.

What course of action next?

Businesses have been made very vulnerable by high energy prices – many have already had to close.

To help mitigate the current market volatility, we have been recommending that customers consider a flexible procurement approach, which gives them access to wholesale markets to be able to benefit from lower prices on the futures market, rather than being locked into a fixed price contract at current rates.

We, sadly, do not have a crystal ball. However, we would expect that Government support might be based around certain aspects of an energy bill such as commodity charges or taxes.

In a flexible contract, all these cost cuts are directly passed through to the customer, so that they would benefit from them, should the Government go down this route.

Our advice

We advise that businesses continue their conversations with their energy consultant and get their negotiations and contract agreement in place, ready to sign now.

You might still decide to hold off on signing till there are more details in place from the Government, but do not wait until the announcement is made and the flood gates of requests for contracts open.

If you would like any help or further information on fixed or flexible energy procurement, please get in touch.

MIM Patron helps automotive firm become more energy efficient

Control Energy Costs — 03/07/2018

Made in the Midlands Patron Control Energy Costs (CEC) is working with a West Midlands automotive firm to help it become more energy efficient.

Baylis Automotive, which employs 60 people at its 65,000 sq ft facility in Smethwick, manufactures metal pressings and welded assemblies.

It has recently secured a clutch of new orders which have helped it achieve annual growth of 25%. It has won a number of contracts to supply seating and HVAC components for the agricultural sector, which in turn, has taken turnover to £5m.

The company turned to CEC to help it manage its energy more efficiently as it looked to increase capacity.

The approach is already reaping dividends, with the firm saving in excess of £25,000 by renegotiating its current supply contract and securing Climate Change Levy (CCL) tax relief for the first time.

“We supply over 172,000 pressings every week and these range from small HVAC nozzles to large heavy duty side members for coolant systems - all manufactured to the highest possible quality,” said Raj Desai, Managing Director of Baylis Automotive.

“This year will see us smash £5m in turnover and, with the increase in work, comes an increase in costs through new machinery and more energy. We don’t have the time to monitor usage or look at ways where we could be more cost effective, so thought we would bring in external specialists.”

He continued: “CEC were introduced to us through a mutual business partner and we were immediately impressed with its transparency and the desire to understand our issues.

“Technical Analyst Rebecca Capon quickly got to the bottom of things and spent a lot of time negotiating a new provider for our electricity needs and explained to us that we could be eligible for financial relief through the Climate Change Levy. We didn’t even know that existed.”

CEC, which is one of the UK’s leading specialists in utility management, managed to secure Baylis Automotive a £15,000 refund from CCL and ongoing savings through the new provider could work out to as much as £4,000 per month.

It is also helping the company increase its power supply so its growth and subsequent rise in energy usage does not result in excessive charges.

“A lot of manufacturers in the Black Country are growing and with that growth comes escalating energy costs,” said Rebecca.

“There’s lots of examples where firms just pay the increase without investigating as it’s seen as a non-core part of their business. This is where we come in. All of our analysts have extensive experience of forensically examining usage, identifying new supply contracts and tapping into any subsidies companies are eligible for.

“So far, we have generated Baylis Automotive over £25,000 in relief and monthly savings and this figure could increase as we look at new energy saving measures the company could introduce.”

Control Energy Costs work with more than 900 retained clients across the UK - many of them MIM members - with its team of analysts providing an initial, no-obligation audit and then working with the customer to identify existing issues and opportunities to reduce bills, whilst advising on improving future procurement strategies.

Following feedback from clients, the company has recently launched CEC Direct as a transparent, clear and valuable alternative to the majority of energy brokers.

Unlike most competitors, it declares what it will do and its costs in a Service Agreement with the client, removing hidden fees or commission.

Pictured is Liam Conway, head of CEC Direct, Technical Analyst Rebecca Capon and Raj Desai, Managing Director of Baylis Automotive.

Energy prices to remain significantly high for nearly a decade

Control Energy Costs — 26/05/2022

With the ongoing news about rising energy costs, research shows that energy prices are set to remain substantially above average up to the year 2030 and possibly after that.

Tom Edwards the Senior Modeller at Cornwall Insight said:

“While we are used to seeing headlines depicting energy prices at an all-time high, unfortunately, while prices will reduce, our modelling shows that pre-2021 prices are not making a comeback this decade and likely beyond”.

In the next decade the importance of renewable energy will increase significantly. It is crucial that we make plans and changes for long-term generation as we see changes in the energy technology mix. For businesses, having a clear strategy on how you purchase energy possibly by making use of flexible energy contracts, will be more important than ever.

Research from Cornwall Insight looking at Great Britain’s (GB) Power Market out to 2030 has shown energy prices will remain in excess of £100/MWh annually. This is significantly above the five year pre-2021 historic average of £50/MWh in Winter and the even lower prices in pre-2021 Summer.

While prices will decline from the current levels, they will remain high according to Cornwall Insight’s Benchmark Power Curve (BPC) for the British Electricity Market which covers England, Scotland, and Wales. Prices are expected to rise to £150/MWh in Winter 2025 due to closures of nuclear power stations, delays to Hinkley C, and increasing high-cost peaking capacity.

Senior Modeller, Tom Edwards at the Cornwall Insight said:

“Rising EU demand for non-Russian gas has pushed up gas prices across the world, and these higher prices have increased production costs for power, with gas set to remain the marginal fuel source for producing power throughout the remainder of the 2020s. With all GB coal capacity due to close by April 2024 and many nuclear power stations coming to the end of their lives, high power prices will continue to feed through into consumer bills.”

However, with the help of renewable generation, capacity will quickly increase to meet targets and will help meet rising demand.

Securing £180,000 refunds of water charges for our client

Control Energy Costs — 20/08/2021

We find that water is often the forgotten utility, but it can be a significant expenditure in certain sectors, in particular hospitality and manufacturing.

Recovering £180,000 of water overpayments

One of Control Energy Costs’ clients is an international organisation that operates several private member clubs and restaurants worldwide.

Whilst we manage energy procurement for this client, they also asked us to review historical charges for the UK operations, starting with water.

We went through all their invoices and identified an array of anomalies in the way that charges were being billed. We then worked with their suppliers to get these corrected.

Savings and benefits

This work resulted in refunds to our client in excess of £180,000. We went back over several years of invoices to identify these errors. The single largest billing error was for £91,000 and that related to just one site.

Needless to say, the client was delighted and we are now in the process of moving their portfolio for water into a group contract, which will save them further money.

It will also provide them with significant non-tangible benefits, including reduced administration, a single monthly bill and one payment based on actual charges for all sites.

Why water management is important

Monitoring and reducing usage, as well as saving water wastage through leak identification and reusing water where possible, not only saves businesses money, but it is also an important part of your net zero strategy.

Water supply is exacerbated by climate change on the one hand and water mismanagement/wastage on the other. Agriculture and industry use around 90% of the world’s direct water withdrawals, with these industries consuming the most:

Fruit and vegetable farming
Garments and textiles
Meat production
Beverage industry
Automotive manufacturing

The World Bank’s Water Resources Group expects water demand to exceed current supply by 40% by 2030. Industrial water consumption places strain on the world’s limited water supply, with agriculture and industry accounting for approximately 90% of direct water withdrawals.

Here in the UK, we have less available water per person than most other European countries and London is drier than Istanbul – although it may not feel like that most days!

MITM Patron Control Energy Costs Help RSD Pressings With Their Energy Costs & Management…

Control Energy Costs — 06/02/2018

MITM Patron Control Energy Costs Help RSD Pressings With Their Energy Costs & Management

Cannock based RSD Pressings who moved in to their purpose built manufacturing facility in January 2016 have benefited from the knowledge and connection they made with Control Energy Costs (CEC) in August 2017.

Daniel Burton, Operation Director at RSD Pressings outlined the relationship with Liam Conway Of CEC by saying Liam approached me following a breakfast morning we both attended at Salop Design & Engineering organised via Made In The Midlands. He mentioned he knew we were a metal pressing company and that it may well be worth getting together for a chat. Two things made me think this would be worthwhile; Firstly, Id seen a number of Liams case studies and the fact he was a Patron of Made In The Midlands validated his service. Secondly; He mentioned Salop Design & Engineering who we had just had a factory tour of were clients too!

RSD Pressings have continued to invest in machinery and have recently increased their pressing capacity to include a 300 Tonne progression press.

Liam Conway explained Metal pressing like so many manufacturing processes is energy intensive. There are however a number of immediate opportunities for metal pressing businesses to address their historic costs which often results in a retrospective rebate

Daniel Burton summarised the relationship by saying Liam came to see our business and asked for the opportunity to prove CECs value to us. Within 2 months we had secured a refund on our electricity, reduced a line on our invoices immediately to zero and secured new supply contracts expertly negotiated by CEC

For further information or to start a conversation please email LiamC@cec.uk.com

Control Energy Costs become Made in the Midlands Patrons

Control Energy Costs — 10/03/2016

Made in the Midlands are excited to announce that Control Energy Costs (CEC) have joined as our newest Patron members.

CEC can provide your business with a full utility management and procurement service which covers energy, electricity, gas, water and associated costs. CEC can manage all of the administration, whilst involving their clients in all of the decision-making processes.

At the latest Made in the Midlands roundtable hosted by Petford Tools Ltd, the energy industry and CEC were the major topics of conversation. In turn, Petford Tools Ltd and ANT Industries have become CECs latest clients after learning about the potential energy savings available to their business.

CECs National Business Development Manager, Liam Conway stated: We can support manufacturers in understanding their energy consumptions, profiles and spends. We initially conduct a no cost, no obligation audit and analysis of their historic supply terms and current supply terms. It is an easy decision for business owners to speak to us.

If CEC fail to find anything outstanding in their initial report of your business, you will not have to pay them a penny. Instead, they operate on a share of savings basis, where they will take a 40% share of the energy savings they can offer your company. Unlike energy brokers, CEC will not take any commission from suppliers. This means that they can always reduce a company's costs in comparison to an energy broker. CEC design their services to have clear and sensible conversations with clients to help succinctly explain the complex energy industry.

Furthermore, CEC operate on a quality over quantity basis, as Conway added: We have ten analysts in our offices and each account has a dedicated account manager. Wed rather have fewer clients of really great quality. We work with around 800 clients and around 52% of them are manufacturers.

CEC ensure that all of the costs paid to them are transparent, whereas some energy brokers are liable to adding hidden costs. Within manufacturing, the majority of Directors in control of energy costs tend to greatly underestimate the potential savings available to their company. The larger the scale of the business, the greater opportunity it is that CEC can provide added value to your business.

Additionally, Conway said: For many manufacturing companies they dont fully understand or manage their energy costs, if a business spends 1-3% of turnover on energy it tends not to be appropriately managed because there are more important matters to control first."

Following the CEC Roundtable discussion, Petford Tools Ltd MD, Melvin Sinar invited CEC to conduct their initial audit and analysis work. Within four weeks of engaging with CEC, Petford Tools Ltd are benefiting to the tune of £55,000 per annum. CEC identified overcharges, reduced third party costs and implemented significant new contract supply cost savings.

In conclusion, Conway said: If you are a manufacturing company that is using an energy broker, we can probably reduce those costs by around 3-6% immediately. That is probably the lowest estimation of what we could do for clients. For most clients we can offer a significantly greater saving than that. We are aiming to host another roundtable discussion as a part of our membership and we look forward to informing manufacturing businesses of the potential savings we can offer them.

What to consider when comparing quotes from energy suppliers

Control Energy Costs — 23/04/2020

If you are a business with multiple locations, then having a supplier best equipped to handle this will save time on administration in the longer term.

You’ll spend a lot of time chasing for answers to queries if the suppliers’ customer service and responsiveness just aren’t up to scratch. Any reputable energy broker will know which suppliers are better for businesses with multiple locations and should be considering this when they present options for you.

Comparing like for like

When looking at the cost of energy on quotes, you need to ensure you’re comparing like for like. You should be asking questions such as What does the unit rate include? And what happens if green taxes and levies change?

When an energy broker puts quotes in front of you, they should also be clear about the commission they are being paid for each different option and how and when they get paid. This should always be part of the conversation, and if it isn’t, then you need to walk away.

Questions you should ask about suppliers

There are several questions you need to be asking about the supplier too, including whether they known to you. Most bigger brands will be known within both the domestic energy market but some business energy suppliers don’t market to the general public so it is unlikely that you will have seen an advert of theirs on TV or on the side of a bus.

There have been several energy suppliers that have gone out of business over the years; in 2019 a total of eight domestic energy suppliers went out of business. Historically some of the bigger business energy suppliers that have gone bust include Enron, Independent Energy and National Power. This causes headaches for you as a customer.

However, the risk can be somewhat mitigated if you do some research into the supplier yourself and see what is being said and reported about them on social media and in the national press before engaging with them.

100% renewables

Are you looking at a supplier that offers 100% renewable energy? There are several providers that have 100% renewable energy options so if this a factor in making your decision, you should contact Control Energy Costs so may discuss how to secure carbon neutral electricity.

If you are having any issues demystifying the jargon or you’re unsure of what your business needs in terms of energy is then why not get in touch with one of the team here at Control Energy Costs.

Are You Really Getting As Good A Deal As You Think...??

Control Energy Costs — 02/08/2016

Are You Really Getting As Good A Deal As You Think..??

A question I ask prospective clients is 'How do you pay your energy broker' & 'How much do you pay them'.... The answers I receive the most are 'We don't pay them' & ' I really don't know'!

If you fall into either of these categories then we should talk because it might be worth shedding some light on how an energy broker actually earns their commission... Might make you think twice!

Energy intensive manufacturers are ripe for energy brokers as often the supplies are complex, confusing and have the opportunity to build in large margins and commissions.

Proof is always in the pudding but as a business I firmly believe the person responsible for energy costs should have accurate and transparent information to hand in order to make the best and most appropriate decision.

I'd be delighted to highlight opportunities for Made In The Midlands members.

Liam Conway
liamc@cec.uk.com
07501221728

Cost of living on the rise

Control Energy Costs — 24/03/2022

Russia’s invasion of Ukraine and the resulting international backlash have plummeted energy markets into complete chaos.

While Russian imports account for 8% of total UK oil demand, the ongoing war between Ukraine and Russia is causing severe supply disruption within the energy industry which is why gas and oil prices are at an incredible surge. Petrol and diesel prices in the UK have risen to record highs for nine consecutive days, according to the RAC.

The war has had extreme consequences for global energy markets too. European natural gas broke price records and oil futures grew to the widest range in three decades. The average prices of petrol and diesel in the UK hit 161.1p and 170.1p per litre in the middle of March – up respectively by 8p and 13p in a week.

Cost of living

With the cost of living rising expeditiously, the UK government is feeling the pressure from citizens and businesses amid inflation. Business secretary Kwasi Kwarteng has said ‘We will work closely with international partners including the USA, Netherlands and the Gulf to ensure alternative supplies of fuel and oil products’. Even before Russia’s invasion of Ukraine, food prices and energy bills have risen as inflation has rocketed to 30-year highs, with more pain for households set to come in April when the energy price cap is raised.

The Prime Minister has also confirmed that the government has set out an energy strategy to explain the UK’s long-term plans for greater energy security, including both renewable and nuclear power. The UK government want to move away from depending on Russia for oil and focus on building a stronger more resilient British energy system.

Despite the war having no direct correlation with the UK, we are on the receiving end of the consequences, hence the energy market mayhem. The Russian invasion of Ukraine and the EU’s dependence on Russian natural gas show that diversification of energy supplies is crucial to establishing energy security.

Energy in the UK

Over the past 18 months, the UK was already facing increased energy costs as a result of global supply challenges. But now after Vladimir Putin’s order, there are warnings the price cap for households might have to rise again to £3,000 when it is next due to be reviewed for October.

Gas prices have already risen in response to the war in Ukraine and are now more than 20 times higher than they were two years ago. Russia is the world’s second-biggest producer and largest exporter of natural gas. If they were to turn off gas pipelines or there are new energy sanctions from the West, this has the potential to push energy prices up further.

Here at Control Energy Costs, we are here to discuss any concerns you may have about energy prices or usage, so feel free to get in touch if you need any advice.

COVID-19 and your business utilities

Control Energy Costs — 30/04/2020

Considerations if you’ve had to close your business

For any business that has closed their doors to the public, such as restaurants, gyms, leisure centres, pubs, bars, many other public spaces and entertainment venues, there will be several logistical and operational considerations in terms of energy use and the cost of energy in these difficult times when you are unable to open.

These considerations will ensure that your energy usage in these challenging times is reduced and the impact on the environment is also limited.

We’ve complied these actions for you into a handy PDF checklist that you can share with stakeholders and colleagues.

Keeping up with your payments

If your business is experiencing temporary financial problems and you are concerned about meeting the cost of your utility bills, you should contact your supplier and explain your situation.

They might be able to offer deferred or reduced payment terms to give you time to get over this difficult period. There is no guarantee of this, but it is important you enter into dialogue with them rather than simply stop paying.

A failure to pay without warning could lead to issues in obtaining the lowest price in the future, because your credit rating could be adversely affected.

Take or pay contracts

If you have a take or pay contract clause for energy, and you can’t use the energy you have an agreement in place to use, then please do make contact with us here at Control Energy Costs so we may determine if there is likely to be a breach or what flexibility can be given in these difficult times.

Your energy supplier won’t automatically make changes, so we urge that you communicate with us as soon as possible.

Unscrupulous brokers

As in any time of crisis, there are always those who are keen to exploit the situation. Several clients have been approached by brokers offering rock bottom prices and stressing they must sign immediately.

These deals are rarely what they seem. Although energy prices are low, the commodity element only accounts for 40% or so of your total bill value. The cost of delivering electricity or gas and the environmental taxes associated with them haven’t dropped.

We are constantly reviewing the market and its trends, so if we believe you need to take action we will be in touch.

If you do receive an unsolicited approach, please do not hesitate to contact us and we shall advise you accordingly.

Getting in touch with the team at Control Energy Costs

The Control Energy Costs team is fully operational from home, so do get in touch if you have any questions, comments or need advice or guidance for any energy related matter in these unprecedented circumstances we are all facing. Please use the normal contact numbers and email addresses.

The Impact Of Brexit On UK Energy Prices

Control Energy Costs — 29/07/2016

The impact of Brexit on UK energy prices

A question we are often asked is what will be the impact of Brexit on my energy bills? The answer is quite simple not much is likely to change. However, there are some short term and long term considerations.

Short term

We may see some increases in commodity prices but these are more likely to be due to the £/ relationship. As uncertainty over Brexit had already been factored into the forward curve, no price hikes are anticipated.

Long term

This is more complicated and therefore difficult to predict. The UK and EU are interdependent and unlikely to be decoupled, however being outside the EU means the UK will have little influence over formulation of network rules.

In terms of cost, the new governments position on renewable energy and the removal of EU funding for low carbon generation will have an impact. The shift from coal to renewables has been conducted almost irrespective of the financial implications but could be reversed by a new regime. In the opposite direction, although EU money will not be removed until Article 50 is sanctioned, it is unlikely the UK will receive the full budget prior to Brexit, or have access to European Investment Bank loans.

As for new nuclear energy, this again will be subject to the new chancellors standpoint which may differ from his predecessor who was a supporter of the Hinckley Point and Bradwell projects.

Conclusion

Oil and gas will continue to be traded as they are now and priced according to global market conditions. Existing gas import infrastructure will ensure supply
and there is scope for increased LNG deliveries. The UKs energy mix may shift and this will have an impact for investors, an impact which will be passed on to end users. Environmental legislation was spearheaded by the UK therefore Brexit will have little or no effect on these issues.

Microsite Content Winners!

Control Energy Costs — 09/12/2022

On Thursday 1st December 2022, Liam Conway attended the Made In Midlands Christmas party where Control Energy Costs had won the award for Microsite Content – what a great way to end the celebrations! The award was given to us for our consistent delivery of microsite content, currently totalling 31 articles on the Made In site.

Credit and thanks to our marketing team at Scaramanga Agency, who have ensured that the microsite is consistently updated throughout the year with the latest news from Control Energy Costs.

Our partnership with Made In Midlands

We have been patron members of Made In Midlands and Made in Yorkshire for several years and during that time, we have worked with hundreds of Made In members. As part of our partnership, we developed the Made in Energy Club – a collaborative project that helps Made In members collectively save money on their business energy costs.

As we all know, the energy sector has been extremely volatile and uncertain over the past couple of years and saving money has never been more crucial for business survival. Joining the Made in Energy Club in 2023 could set you on the right path to making significant financial savings in the new year.

How does the Made In Energy Club work?

Th Energy Club is free to join and works through the collective buying power of Made In members. The more energy being purchased, the more trades we can make, giving us the ability to aim for a lower weighted price. By working together, all members of the Energy Club can benefit from cost savings.

We can also provide you with a wide range of 100% renewable energy contracts, helping you reduce carbon emissions and support your journey to net zero, as well as being part of the wholesale market access product as part of a flexible market approach.

As a member, you will have access to a range of additional energy-related services from legislation and compliance information, invoice validation and energy reporting to make sure you’ve not been overcharged, as well as help with site works projects.

Even if you’re still within contract, we can work with you to explore your options and have the most suitable and cost-effective plan in place for you, ready to go when you need it.

Simply visit the Made In Energy Club page on our website to get started. To find out more, you can download our free brochure, or get in touch with us on 07501 221728, or via email liam.conway@cec.uk.com.

If You Haven't Already... Start Looking at Your 2018 Electricity Renewals

Control Energy Costs — 29/09/2017

Whether you're a client of ours or not ( and we'd very much like you to be! ) it would be worthwhile beginning to look at your 2018 electricity renewals sooner rather than later.

There are two main reasons for this:

1. The market is volatile, security of supply remains uncertain and this coupled with increased third party and non commodity costs on the horizon is pushing prices up.

2. I think this point is probably more important... For the vast majority of clients we're analysing costs for they're seeing double digit cost increases versus current supply contracts. This is increased for businesses coming out of 2 year deals as the costs versus 24+ months ago are considerable. Crucially our message for a manufacturer is the sooner you know about cost increases, the sooner you can budget for them and make plans accordingly. It wouldn't be wise to be unaware of pending increases and find out a month from renewal.

To talk to us about how these increases will impact you and to get a transparent and clear view of the market to help you make contract decisions for 2018 please get in touch LiamC@cec.uk.com / 07501221728.

Saving water and preventing wastage

Control Energy Costs — 23/06/2021

97.5% of the world’s water is locked in seas and oceans, too salty for human use, and most of the remaining 2.5% is in the ice caps.

Because of this, we depend on only a small amount of the available fresh water, not just for drinking and washing, but also for everything we produce.

As water becomes an increasingly scarce resource, building new infrastructure to meet the growing demand becomes exponentially expensive. By saving water instead, we can reduce the need for new infrastructure and offset the pressure on existing.

The efficient use of water also makes our supply more resilient against impacts from wastage, climate change, and natural disasters such as droughts.

Reducing business water usage

In commercial situations, closely monitoring your water usage through the use of AMRs (automatic meter readers) and installing more efficient devices are the two areas to consider. This serves the dual goal of reducing usage/wastage, as well as lowering costs.

Monitor usage through meters, especially looking at excess consumption at times when your business is closed, such as at night, to identify potential leaks
Installation of urinal controls or waterless urinals, efficient flush toilets, automatic or sensor taps in kitchens and bathrooms – the savings can often quickly recoup the initial outlay
Water efficient taps and showers will also reduce energy costs
Choose devices that have eco-settings built in
Knowing where your supply pipes run and where the shut off valves are.
Protect pipes against cold weather

Water recycling

Water recycling schemes are worth considering and are often even more viable in business settings than domestic settings. Determine where your wasted water is going and if or how you can recycle it in other areas of your business.

Depending on usage, some water may not need to be high-grade, so can be reused with little intervention. If the requirements need a higher quality, the options are:

Ozonation – infusing water with ozone
Ultrafiltration - using membranes, similar to microfiltration
Aerobic treatment (membrane bioreactor) – a small scale sewage treatment system
Forward and reverse osmosis – using a semi-permeable membrane to separate water from dissolved solutes
Advanced oxidation - chemical treatment procedures to remove organic (and sometimes inorganic) materials

When we set up clients with AMRs, we provide full access via our client portal to the reporting which will allow you to check your water-efficiency and we will alert you to unusual patterns of consumption.

Benefits of lower water consumption

There are many benefits to reducing water consumption to a business, beyond cost reduction. These include:

Your environmental, social, and governance (ESG) strategy
Environmental legislation compliance
Reducing your carbon footprint and supporting your journey to net zero
Being a more environmental employer

Engaging employees is an important part of any programme to save water (and energy) to change attitudes and behaviours, where necessary, to all work together towards a common goal.

At a macro level, using water efficiently means that we can minimise the amount of additional water resources being taken out of our rivers and aquifers, especially as demand is rising, to protect our water resources and the wildlife that rely on them for their survival.

Public Sector Decarbonisation Scheme

Control Energy Costs — 09/11/2020

On 30th September, the Government announced £1 billion worth of funding in a bid to stimulate innovation, create green jobs and address the climate challenge. The funding scheme is called the Public Sector Decarbonisation Scheme (PSDS).

The grant scheme allows public sector bodies (PSBs) to apply for a grant covering up to 100% of the costs of capital energy saving projects.

The scheme has a set of criteria for eligibility and for eligible technologies with some technical requirements to proceed with the application.

We can support with the initial identification of energy and carbon saving projects and the application process through to implementation and the required 3 years of monitoring and reporting.

For more information, click on the button below and you can get in touch with the team here.

Green Gas, it’s time to switch…

Control Energy Costs — 24/02/2022

As the UK works towards a greener economy, we take a look into Green Gas and how it is beneficial for both the environment and your business. We will also highlight how to move to renewable energy and reduce your businesses carbon emissions.

Why you should use Green Gas?

You can make it an imperative for your business to use low carbon ‘green’ gases such as biomethane that can replace harmful fossil fuels, reducing your carbon emissions in the heat, power, and transport sectors. The government have put pledges in place to phase out fossil fuels, such as coal, oil and gas, and instead move to renewable energy, such as solar and wind power which is more efficient for your business.

Solar energy is great and one of the most popular forms of renewable energy generation. Wind generation is also a fantastic domain for your energy as it releases less Co2 into the atmosphere. A win for all!

What is Green Gas?

Green Gas is made from biodegradable materials such as human waste, manure and paper and food waste. It can be used in the same way as natural gas but is produced from renewable sources only, making it better for the environment and puts your business on the path to Net Zero.

Green Gas is made at an anaerobic digestion plant where bacteria is used to break down organic matter such as food and farm waste, in order to release biogas. Once the biogas is purified and turned into biomethane, it is injected into the gas grid and piped to businesses and homes across the UK. Using everything from agricultural waste to grass has the ability to produce a low carbon gas source for generations to come.

What are the benefits of Green Gas?

Using Green Gas is a step in the right direction as it is carbon neutral and creates a huge change in the emissions your business releases. Doing something positive for the environment is always worth it and Green Gas puts you on path to a more sustainable future and inspires others to do the same. It will be worth looking into Green Gas options for your business.

Now more than ever, companies are trying to find ways to create eco-friendly work spaces, knowing that it can cut your costs, improve efficiency and create a healthier workspace in your business. With that being said, going ‘green’ won’t just make your employees happy. It is becoming a must-have for consumers. Considering the fight for climate change is a global movement, customers everywhere are demanding that businesses take the lead in the making of a better world.

Play your part

We can all play a part in protecting our planet and altering the source of our energy, from simple daily changes, like recycling, to bigger decisions like switching to electric vehicles. The important takeaway is that by making these changes, you’ll not only be making the environment better, you’ll be changing the quality of life in your own backyard.

Generation from renewable energy sources has been increasing as the years go by and is the best way to reach the 2050 Net Zero target. In 2020, we decided that as a business, we were going to begin out Net Zero journey, and we have not looked back since.

The Reasons Why Electricity Costs Are Increasing Rapidly

Control Energy Costs — 29/08/2017

Part of our role as a Made In The Midlands Patron is to add value to the manufacturing members and share knowledge of the energy sector to help members make better decisions and have a greater understanding of overall energy costs and budgets.

This is a very short snap shot which we thought worthwhile sharing as many members coming out of supply contracts throughout the remainder of the year are likely to see significant electricity increases versus current contract costs. We are frequently seeing upwards of 10% increases which members need to be aware of as soon as possible to not only take action but budget for the increase too.

So what's driving the increase...?

In short, it's all of the 3rd party and non-commodity costs which make up such a large proportion of the invoice. Examples include; Distribution costs, transmission costs, system balancing, renewable obligations, climate change levy to name but a few.

As a broad overview in 14/15 the average cost of these non-commodity costs were 4p/kWh where as in 17/18 it's 5.5p/kWh. Therefore if you're coming out of a 2 or 3 year deal there's every chance you're automatically seeing an immediate increase of 1.5p/kWh.

By 21/22 these costs are forecast to make up 7.5p/kWh of the total cost.

So what can you do to mitigate this...?

Good, sound advice is required where we can provide transparent analysis of your actual costs and forecasts against actual data. Often manufacturers are hoodwinked into thinking an energy contract is much better than it is by a broker manipulating the figures. We often see brokers leaving some or all of the non-commodity costs out when representing an offer. Businesses sign a supply contract then when it goes live are dumbfounded by all of the additional charges suddenly appearing.

The other key aspect is to reduce these non-commodity costs where appropriate. A good example of this is addressing the tax paid within the energy invoices. Certain manufacturing sectors are able to claim relief in this area.

What to do next...?

1st October is a common contract end date. If you're reading this and have yet to commit to a supply contract please call us, we're more than happy to have a conversation and help if we can.

Allow us the opportunity of ensuring you don't get stung and are receiving accurate and timely advice.

For those with 2018 energy renewals the sooner you begin to build a picture of your actual circumstances and arrangements the better.

Contact Details

We currently work with 74 members we try to have as many conversations as possible with businesses but if you contact us it's a lot easier!

LiamC@cec.uk.com / 07501221728

REGOs: How green is your energy supplier?

Control Energy Costs — 28/04/2023

As the UK target to reach net zero looms ever closer, many companies will turn to renewable energy as the simplest step to reducing their carbon footprint. This involves choosing a renewable energy electricity supply, backed by Renewable Energy Guarantee of Origin (REGO) certificates.

REGOs are certificates issued to companies from energy suppliers, guaranteeing that the electricity they source has been generated from renewable sources.

However, the energy they purchase may not be as green as you think.

How do REGOs work?

REGO certificates are issued by the Office of Gas and Electricity Markets (Ofgem), a UK body that regulate suppliers. Each megawatt hour (MWh) of renewable energy generated equates to one REGO certificate.

These certificates authenticate to the consumer that renewable sources generated that portion of energy, strengthening your environmental credentials.

You can also report lower or zero carbon emissions under Scope 2 as your power supply would be supplied from 100% renewable energy.

The grass is not always greener

When you sign up for a 100% renewable energy deal with an energy supplier, you may assume that the energy you are buying is exclusively generated from renewable sources.

However, this is not always true.

Some suppliers will ‘greenwash’ their green tariff claims and avoid providing all details about its sustainable initiatives. Essentially, they could purchase a REGO certificate, without actually buying the power they are associated with, and subsequently combine it with energy purchased from the wholesale market – which could be sourced from fossil fuels, embelishing their renewable claim.

According to a paper published by Good Energy in 2020, in recent years there has been an emergence of numerous energy suppliers seeking to ‘capitalise on the growing public concern for the environment – marketing themselves as 100% renewable’ but a ‘supplier doesn’t need to hold a single contract with a solar farm, or buy a single MWh of power from a wind-farm – all they do is buy enough REGOs to match their customers’ demand.’

This is because it is not mandatory for REGOs to be delivered with the power used to generate them.

It’s important to remember that REGOs themselves don’t reduce carbon emissions. If you are serious about your organisation’s green initiatives, investing in the development of green energy infrastructure is going to have a greater impact than buying the certificates alone.

How we can help

Control Energy Costs can provide guidance on carbon reducing solutions for your business.

We have recently launched a carbon solutions service, which enables businesses to reduce both carbon emissions and costs at the same time. The primary benefit is that there is no direct cost to the business – the fee is based on actual gains, not projections. For many clients, the process is self-funding and can even be profitable.

To find out more please contact us on 01737 556631 or email us at info@cec.uk.com.

You can also download our carbon solutions brochure: cec.uk.com/carbon-solutions

Webinar Q&A - SECR: What you need to know

Control Energy Costs — 11/02/2020

Following on from the SECR webinar we held on the 15th January 2020, we have compiled some of the questions that were asked by attendees in regards to what is SECR, why it has been introduced and what business need to do.

How does SECR differ from ESOS?

SECR (streamlined energy carbon reporting) is every year from now forward. It is a statement of the carbon footprint of every organisation – how big it is and whether you are actually reducing it.

ESOS (energy saving opportunity scheme) is dealt with every four years. Its purpose is to find energy efficiency opportunities, using a methodical process to find ways to save. It can be used as your four-year planning tool.

Do I need to comply with both?

You should always assess your compliance with both. You could, in theory, have more than 250 employees therefore in default be in ESOS. There are some organisations on the threshold that are in between ESOS and SECR. The vast majority of companies are in both and have different qualifications.

Under ESOS we use a de minimis rule to ignore another member of our group. Can we still do this under SECR, or would they have to be reassessed?

You won’t be able to ignore them. Within the Government and SECR reporting there is a materiality point but that is nowhere near 10%, which is where the minimum threshold was. You are unlikely to be able to consider things to be immaterial.

Do you need to be registered as per the ESOS auditors?

ESOS requires a registered assessor and has a competency requirement that sits behind it. There is no competency scheme or registered scheme for SECR.

We are a small academy trust. We comply with the requirement to report only through our land and buildings value in our balance sheet. Have you received any update as to whether academy trusts will have to report?

This is still being finalised. According to the legislation, it is the way that the entities are structured that would define it, i.e. if it’s a limited company or a large ELP.

What happens if I qualify this year but not next year?

The obligation applies to the accounts that are being filed for that year.

We have ISO 500001 certification; do we still have to comply?

Yes, you would as you would end up with a non-conformality on your ISO 500001 if you didn’t.

Are there other schemes running which may exempt me from SECR?

No, if you meet the requirements, you need to report. The only exemptions are if your consumption is below the 40,000 fuel hours or you have a commercial interest to protect. It would be specific to certain industries such as military and aerospace.

What are the penalties?

You will be penalised for filing inaccurate accounts. We won’t know what this will look like until precedents have been set. This is a UK scheme and not tied to any EU directive.

Do schools need to comply?

It is your organisation structure you need to consider if you come under any of the qualifying structures.

Do public bodies need to comply?

The scheme applies to listed companies, limited companies and large LLPs (limited liability partnership). A public body would only have an obligation if it was organised under one of those structures. As an example, it is not uncommon for a local authority to have a limited company subsidiary.

Why did the Government stop the CRC scheme?

The CRC scheme was seen as an administrative and cost burden and didn’t offer any assistance in actually reducing consumption. The shortfall in income was made up by an increase in CCL.

Carbon offsetting

Control Energy Costs — 12/10/2020

As businesses look to be more sustainable and head towards being carbon neutral or even carbon negative, we thought we would investigate carbon offsetting: what it is, how you can go about it and why you should consider it.

So, what is carbon offsetting?

Carbon offsetting is the process of calculating the total carbon emissions (CO2) and offsetting them- for instance, you can offset the carbon emissions from your flight. There are even several handy calculators online that will calculate the exact amount you need to offset.

The idea is to fund solutions to climate change by paying a contribution for these emissions.

As a business, you will need to look at where your carbon emissions are coming from to calculate your carbon footprint.

You can then offset this carbon in a variety of ways, but the main ones are:

Investment in onsite renewable energy or clean energy technology
Planting trees
Carbon capture and storage
Paying money to an offset certifier that offers verified emission reduction (VER) credits

So, how much carbon do we emit?

On average each person in the UK emits just over 8 tonnes of carbon dioxide annually. The UK is 36^th in the world per head for carbon emissions.

Why should we consider carbon offsetting?

Carbon offsetting can help limit the impact your business has on the environment. If you offset all the carbon you emit you are achieving NET zero.

Which businesses are going further?

Ideally, not only should businesses offset the carbon the emit into the atmosphere, but they should also have a sustained goal to reduce carbon emissions and look at ways to have less impact on the environment. This might be by using by-products of industrial processes or instead of travelling to meetings holding them online. Electric vehicle fleets are another way to limit carbon emissions.

An example of a business with long term sustainable goals to reduce emissions is Brewdog. you can read all about their pledge to “make earth great again” here.

How difficult is it to offset carbon emissions?

If you Google carbon offsetting you are presented with a myriad of options. There are also several differing accreditations. There are in fact so many options available out there for businesses, you can invest in UK projects or overseas projects. There are so many variables and you need to understand what you are investing in to understand the pros and cons, it is all well and good planting trees, but trees take time to grow for example.

We can help simplify and explain the options available to you and understand your motivations and objectives and help align projects to these.

We highly recommend that you always use the following principles when considering offsetting:

Cut emissions first. Prioritise reducing your own emissions and reduce the need for offsets in the first place.
Ensure environmental integrity. Use offsets that are verifiable and correctly accounted for and have a low risk of non-additionality, reversal and creating negative unintended consequences for people and the environment.
Maintain transparency. Disclose your current emissions, accounting practices, targets to reach Net Zero, and the type of offsets that you are using.
Shift over time to carbon removal offsetting. Most offsets available today are emission reductions, which are necessary but not sufficient to achieve net zero in the long run. Carbon removals scrub carbon directly from the atmosphere.
Move towards long-lived carbon storage. Shortlived storage involves methods that have a higher risk of being reversed over decades. Longlived storage refers to methods of storing carbon that have a low risk of reversal over centuries to millennia.
Support the development of Net Zero aligned offsetting. Use long term, well established frameworks. In addition, supporting the restoration and protection of a wide range of natural and semi-natural ecosystems in their own right has benefits in terms of the world having greater resilience to climate change as well as carbon storage.

CEC can offer full carbon offsetting so, as a business if you would like to find out more about how you can limit your impact on the environment, why not get in touch?

Global hyperdrive for wind and solar generation

Control Energy Costs — 28/07/2023

New data published in the Global Electricity Review from energy analyst, Ember, reveals that May 2023 was the first full month on record to see wind and solar electricity overtake fossil fuel generation in the EU. Wind and solar accounted for 31% of electricity, while fossil fuels generated a record low of 27%.

This hyperdrive of renewable transition marks a significant turning point for the fight against climate change. It’s also the first time ever that an annual drop in fossil fuels has occurred without the influence of other factors such as the recession and the pandemic.

Ember believes that the culmination of growth in solar power, strong wind performance and low electricity demand are responsible for this record.

It is projected that wind and solar will form the backbone of EU electricity in 2023.

Major milestones in the UK

In May 2023, the National Grid reported one trillion kilowatt hours (kWh) of electricity generated from renewable sources, which would be enough to power UK homes for 12 years. They predict that the next trillionth kWh will take just over five years to reach.

Drax Electric Insights released findings from an Imperial College London report in June 2023, which revealed that 32.4% of UK electricity was supplied from wind power during the first quarter of 2023, the first time in 100 years that the UK has not been primarily reliant on fossil fuels. It is also the first time that wind has provided the largest share of power in any quarter in the history of the country’s electricity grid. The particularly windy weather experienced in January contributed in part.

Gas followed closely behind, supplying 31.7% of electricity, outpaced by wind due to increased offshore wind capacity and falling electricity demand.

In the first three months of 2023, renewable sources (wind, solar, biomass, and hydro) contributed 42% of UK electricity, while fossil fuels supplied 33%. The remainder was supplied by imports from abroad and the country’s shrinking nuclear fleet.

Dr Iain Staffell of Imperial College London and lead author of the quarterly Drax Electric Insights report series commented, “In the space of a decade, the UK has almost completely cut out coal... wind out-supplying gas for the first time is a genuine milestone event and shows what can be achieved when governments create a good environment for investors in clean technology.”

With Drax eliminating the use of fossil fuel at its North Yorkshire plant and replacing it with renewable power, only one coal-fired power station remains in the UK. This is a pivotal step toward reducing UK reliance on foreign gas imports.

The future looks green

This data suggests a global movement toward a net zero future. However, momentum needs to be sustained.

To find out how your business can get onboard with the renewable transition, download our green eBook.

Should You Be Working With Energy Analysts as Opposed To Energy Brokers?

Control Energy Costs — 31/03/2016

CEC or Energy Broker ?

Most Energy Brokers are primarily concerned with getting you to sign a supply contract. They are paid commission by the supply company directly linked to the consumption and duration of contract you ultimately sign; the higher your overall consumption and the longer the contract, the more commission they will
earn. You dont have to think hard to see how a typical Energy Broker can maximise their income stream.

Generally, once a new supply contract has been signed, Brokers will hibernate until the contract renewal process starts again. CECs approach is
far more holistic. Because we are paid only if we are able to better the deal you would otherwise accept, we are continually looking for ways to find savings for you. We offer a more complete service typically not available through an energy broker giving you a far more transparent understanding of your energy charges and options.

Most Brokers do not conduct comprehensive audits, search for refunds, look for better tariff structures, or monitor your bills on an on going basis,
because it is simply not in their financial interest to do so.

Dealing with CEC on a supply contract renewal will also highlight the major differences in our approach compared to that of a typical Broker. CEC
analysts are actively looking to go to the market at the right time to find you the best deal, appropriate contract structure and contract duration. We
actively target suppliers and negotiate specifically on your behalf to get you the best possible deal. All options are discussed with you in detail, allowing
you to make an informed decision.

Would you prefer an adviser whose objectives are identical to yours, or one who is arguably aligned to the supplier?

We currently work with 12 Made In The Midlands Members and after joining as patrons at the beginning of March we are looking forward to showing others the key differences as highlighted above!

MPF Plating Secure Historic Energy Refunds & Savings Via Working With Control Energy Costs

Control Energy Costs — 09/08/2017

MPF Plating Managing Director Mark Freeman invited Liam Conway of Control Energy Costs (CEC) to meet with him to talk about their services a few months ago and now theyre reaping the benefits of working with the Made In The Midlands Patron.

MPF Plating are zinc plating specialists who moved to their current site in Steward Street in Birmingham in 2003. Since then they have increased capacity significantly and invested into new production facilities.

As a result of the increased capacity their energy consumption and spend has more than doubled in the last few years and as such Mark has had to become much more aware of what actually makes up their costs and work with a specialist to support the procurement of this.

Control Energy Costs undertook an initial audit to analyse the historic and current invoices for electricity, gas and water and highlighted a number of immediate opportunities for refunds as well as immediate non-contract savings. The combined value of these represented 12% of MPF Platings annual spend!

MPF had also pre-signed a new electricity contract which was due to start in October, however when we picked this up we made Mark aware that we could significantly reduce the rates and terms and as such it would be worth staying with the current supplier on renegotiated terms. This reduced the costs versus the contract they would have entered by a further info@cec.uk.com or via live chat on our website.

A day in the life: Mike Stafford

Control Energy Costs — 20/10/2023

We spend a day with our Flexible Procurement and Risk Manager, Mike Stafford. Mike has over a decade of experience in consultancy and a wealth of knowledge on flexible energy procurement - one of our key offerings that enables businesses to mitigate market volatility.

My background

I was born in Sheffield but a fairly nomadic existence through the 80s and early 90s saw me end up in Cardiff, where I secured a BSc ECON in Social Sciences.

I cut my teeth as a younger man working for meter operators, independent suppliers and Wales & West Utilities, before making the leap to consultancy in 2010.

I’ve never looked back; in an industry which is often hyper-specialised, a good consultant is often the client’s only hope of navigating the complexity around us.

In my flex and risk role, I play a crucial part in helping clients understand the most complicated of beasts – the global energy markets – adding context to the numbers.

Fun facts about me

I’m a father of three, currently in the middle of a thirteen year period of parenting at least one teenager(!)

Born in Sheffield, on a Wednesday, to a die-hard SWFC fan, I never stood a chance of being anything other than a Sheffield Wednesday fan. Since the 1990s, this has brought me a little bit of disappointment laced with occasional despair.

I’m a fan of classic-era hip-hop, so if any clients want to discuss the first tranche of Wu-Tang Clan albums alongside chatting through market guidance, I’m more than open to this.

My role

The earliest part of my working day begins with gathering intelligence, studying market movements and the underlying drivers behind them. This involves scrutiny of various market platforms, dashboards and often arcane news websites to unpack the stories behind the story.

This is then followed by meetings, calls and correspondence with our clients on flexible products, to debrief them on market movements, and impact – if any – on purchasing strategy.

Each client brings their own unique needs and desires to the table and their own attitude toward risk, so in addition to understanding market drivers, understanding client’s commercial imperatives is crucial.

Where purchases are to be made, these are executed via supplier trading desks and allocated accordingly. Every second counts in these interactions, with live market prices regularly available only for a few minutes at a time.

Currently, I’m also working through a suite of connection projects from my time in the Projects team of the business. These are rewardingly diverse, stemming from large-scale substation projects, to last-minute, urgent, meter installations.

In the future, both roles will be crucial in the country’s necessary journey towards Net Zero and I look forward to helping clients navigate the changing energy market that will emerge from the clean energy transition.

Times Radio interviews Control Energy Costs

Control Energy Costs — 16/08/2022

On Sunday 14^th August, Liam Conway, Head of Sales at Control Energy Costs, was interviewed by Times Radio’s Alexis Conran, about the energy challenges facing businesses, where there is no price cap on energy bills.

The interview starts one hour and ten minutes into the programme.

Liam said that the fundamental issue is that a number of energy suppliers do not want to take on new business or renew existing contracts. Given that bills have risen between four and 12-fold, the credit implications of higher value energy contracts are adding even further complexity.

Given that 70% of businesses renew their energy contract in October, this is a significant concern for many.

Liam went on to say that businesses who are not able to renew with their current supplier have two options. The first is to go onto out of contract rates, where rates will be punitive, and the other is to consider a flexible purchasing framework, instead of their previous fixed price contract.

The impact of such high increases in energy bills, combined with inflation, is going to put many businesses under immense pressure. Liam mentioned that there is a government scheme to support the most energy-intensive businesses, but that only covers around 300 of the largest manufacturing businesses and suggested that the Government needs to extend this support and intervene in some way in the short term.

Find out more

If you would like to find out more about flexible energy purchasing, please get in touch with us.

You can also download our complimentary eBook.

COP27

Control Energy Costs — 09/12/2022

he COP27 climate conference formally took place between 7^th – 20^th November 2022 and was held in Sharm el-Sheikh, Egypt.

With 33,449 delegates present, it was the second most attended COP and it concluded more than 39 hours after the scheduled close as parties were called for a plenary session to finalise the overall agreement of the summit.

This year’s attendees gathered to discuss a series of crises: energy, cost of living, debt, nature loss and geopolitical tensions. However, the need to act against the climate crisis has never been clearer.

Although some progress was made, public consensus is that inadequate advancements were made toward the climate goals agreed at COP26 and the key outcomes of COP27 seemed to treat the symptoms of climate change rather than address the causes.

The key outcomes were as follows:

Funding climate loss and damages – a historic breakthrough

One of the key milestones achieved was recognition and compensation of the loss and damage that climate change has inflicted on developing countries, a promise that was a decade overdue. Calls for this fund dominated the negotiations over the two-week summit and contributed to its delayed conclusion.

By the end of the conference, a decision had been made to establish a fund with funding arrangements to be discussed at next year’s conference. The fund will help developing countries bear the immediate costs of climate-fuelled events such as storms and floods.

According to Anna Aberg, Research Associate at Chatham House, “COP27 will go down in history as the UN climate change conference where the Loss and Damage fund was agreed.”

Global temperature rise – glacial pace

While the final agreement acknowledged “the urgent need for deep, rapid and sustained reductions in global greenhouse gas emissions,” no new targets or commitments were made toward phasing out fossil fuels which threaten the goal established in the Paris Agreement seven years ago, of limiting global temperature rise to 1.5°C.

This is concerning as ‘The Emissions Gap Report 2022’, which shortly preceded COP27, suggested that without rapid societal transformation, a reliable pathway to the 1.5°C limit does not exist and we can expect more severe weather with each marginal increase in temperature.

Mitigation ambition – insufficient progress

Mitigation ambition refers to actions that reduce or prevent greenhouse gas emissions. The parties agreed to rapidly scaling up clean power generation and energy efficiency measures, including “accelerating efforts towards the phasedown of unabated coal power and phase-out of inefficient fossil fuel subsidies.”

Climate adaptation measures – a repeated promise

Increasing the ability to adapt, build resilience and reduce vulnerability by all in response to climate change was initially vowed in the Paris Agreement. Doubling financial support to facilitate this for developing countries was agreed at COP26. This year’s plan urges developed country parties to “urgently and significantly scale up their provision of climate finance, technology transfer and capacity-building for adaptation.”

Finance

As with every conference, financial concerns shaped the decisions made. They highlighted that around “USD 4 trillion per year needs to be invested in renewable energy up until 2030 to be able to reach net zero emissions by 2050” and funding this amount would require “transformation of the financial system and its structures and processes.”

Summary

Aside from the historic breakthrough of compensating loss and damage to developing countries, few other transformative pledges were made this year. However, countries did not go back on previous promises either. The summit highlights that urgent action is required if we are to keep the 1.5°C Paris Agreement within reach.

A circular economy, is a better economy

Control Energy Costs — 29/04/2022

With the quality of our environment being at the top of all our concerns, it is important we do all we can to ensure we are contributing where possible. That is where the topic of the circular economy comes in to play as it is one way to reduce the pressure on the environment.

The issue at hand

Though economic growth in emerging markets has helped to raise living standards, it has also generated massive industrial and consumer waste. Many cities spend up to half their budgets on waste management. However, innovative businesses are utilising circular-economy principles by finding ways to convert waste into income streams.

What is a circular economy?

The circular economy is a systems solution framework that tackles global challenges like biodiversity loss, climate change, waste, and pollution.

A company in the circular economy doesn’t just recycle products but maintains ownership of them all along. The best way to describe the circular economy model is:

Make>Return>Use and repeat. A cycle, if you will.

The circular economy is based on the notion that there is no such thing as waste. In order to achieve this, products are created to last (good quality materials are used) and enhanced for a cycle of disassembly and reuse that will make it easier to handle and transform or renew them.

A circular economy is based on three principles:

Eliminate waste and pollution

Circulate products and materials

Regenerate nature

How can your business benefit from a circular economy?

Moving towards a more circular economy could deliver benefits such as the security of the supply of raw materials, stimulating innovation, increasing competitiveness and boosting economic growth. Transitioning from the wasteful linear economy to an efficient circular economy will benefit your business now and in the future.

More benefits include:

- Reduces the use of non-renewable resources

Through the circular economy, methods like reusing resources and refurbishing old products (rather than throwing them away) are the standard. This ensures that we use fewer non-renewable resources.

- Lowers carbon emissions

The circular economy will help minimize emissions since its entire model revolves around the sustainable management of materials.

- Aims for zero waste

A cornerstone of the circular economy is to reuse resources and products leading to a zero-waste model. Zero waste means fewer ocean-bound plastics, less trash in our oceans, and fewer landfills.

- Provides benefits for the consumer

A huge benefit to the consumer is job creation. In order to attain the circular economy, many new industry types will need to emerge. This means that there will be a lot of new jobs available.

- Opens new opportunities for companies

Companies can enjoy a more secure supply of resources as we reuse the resources that we already have rather than depending on limited resources. This may decrease the cost of materials allowing companies to run more economically. The practice may also improve customer loyalty.

With that being said, why not consider moving on to the circular economy model for your business? Join the many other businesses that are moving forward with this model by taking the necessary steps.

Why ESG is especially important in a recession

Control Energy Costs — 02/03/2023

ESG stands for Environmental, Social and Governance, which enables organisations to monitor the impact of a business based on these three factors.

Since the pandemic and the war against Ukraine threatened the economic stability of the UK, fears of a recession have grown.

In November 2022, a CEO outlook report published by KPMG, shared their view that ‘businesses embracing ESG are best able to secure talent, strengthen employee value proposition, attract loyal customers and raise capital.’

During these uncertain times, many businesses will be tempted to take a back seat in their ESG initiatives. Yet, companies that continue to invest in ESG during economic downturns are more likely to ‘maintain strong environmental, social and governance values while also achieving solid stock performance and shareholder returns,’ according to Investor’s Business Daily.

A mild recession?

There has been some optimism since 2022, with some suggesting that inflation ‘may not be as persistent and stubborn’ as previously feared. According to a recent publication from the Financial Times, a 10-day period of data collected in February 2023 suggests that the UK economy is showing an unexpected level of resistance and inflation is lower than expected. As a result, economists are now predicting a shorter and milder recession.

ESG drivers

However, there is a strong case that ESG is even more important during an economic downturn.

Here are four reasons why:

1. Risk mitigation

In the midst of the current energy crisis, protection against future price shocks has never been more critical. The crisis has amplified societal, environmental and economic challenges and businesses who are able to manage, predict and prepare for unprecedented circumstances are more likely to thrive.

2. Cost optimisation

Many businesses will look to cut costs during uncertain periods, which often means neglecting their ESG obligations. In fact, Deloitte claims that ‘the likelihood of an organisation undertaking cost cutting initiatives has increased by 74% since the global pandemic.’

However, ESG initiatives can actually help to reduce costs. By capturing Scope 1 and Scope 2 emissions data, businesses can identify cost savings opportunities. They can also prevent energy wastage, additional waste disposal, and penalties, which all incur higher costs.

3. Talent retention

Retaining top talent is crucial to ensuring that businesses can navigate a volatile economy and also helps to reduce the costs of recruiting new talent. Additionally, it provides a competitive edge in

attracting candidates that will drive the organisation’s success, as millennials and Gen Z in particular are interested in working for companies that share their sustainability values.

4. Accelerating growth

EGS initiatives can provide a framework for new revenue streams as stakeholders and customers search for sustainable products and services. According to a publication by PwC, ‘83% of consumers think that companies should be actively shaping ESG best practices.’

Final thoughts

ESG is an essential component of business success and is important to maintain, especially during these turbulent times.

ESG and cost reduction do not need to be at odds with each other, they can work symbiotically. Companies that remain focused on their ESG strategy are more likely to maintain profitability and sharpen their competitive edge.

Carbon solutions

We have recently launched a carbon solutions service, which enables businesses to reduce both carbon emissions and costs at the same time. The primary benefit is that there is no direct cost to the business – the fee is based on actual gains, not projections. For many clients, the process is self-funding and can even be profitable.

To find out more please contact us on 01737 556631 or email us at info@cec.uk.com.

You can also download our carbon solutions brochure: cec.uk.com/carbon-solutions.

UK petrol pumps are converting to E10 fuel

Control Energy Costs — 22/07/2021

There are changes afront on UK petrol forecourts this summer as petrol (but not diesel) will become a little more environmentally friendly.

What is E10 fuel?

The standard 95 octane fuel currently contains 5% bioethanol, but will be changing over to E10 fuel, with 10% bioethanol. This renewable ethanol comes from plant sources and increasing the percentage in petrol will therefore reduce carbon dioxide emissions.

E10 petrol is already widely used around the world – in Brazil, they have some vehicles running on E100, nothing but ethanol.

Only affects petrol vehicles

This will only affect petrol vehicles, not diesel. The government estimates that around 95% of vehicles on the road will be able to use E10 petrol. All those manufactured since 2011 are compatible, as are most manufactured since the late 1990s / early 2000s. You can check your vehicle online - check now

Older vehicles

However, some older models, including classic cars, may not be able to use E10 fuels. If that is the case – the RAC estimates this might amount to 600,000 vehicles - then you will need to use the premium 97+ octane fuels – they do cost more, but this should be offset by better fuel economy.

E10 fuel, on the other hand, can slightly reduce fuel economy, however it is very slightly cheaper than E5.

Putting the wrong fuel in your car

If you do put E10 petrol into your car by mistake, the RAC recommends that you top up with E5 as soon as possible after using a third of the tank. You don’t need to drain it, as you would it you put petrol into a diesel engine.

If your vehicle can use E10, you should be able to mix E10 95+ and E5 97+ in the same tank.

Emissions zones

It’s worth noting, however, that using E10 fuel will not affect whether you can drive in or have to pay to enter a clean air zone (CAZ), low emission zone (LEZ) or ultra-low emission zone (ULEZ), as this is determined by the Euro emissions standard, not the fuel.

Impact on the environment

Carwow.co.uk states that UK CO₂ emissions from petrol cars should drop by about 2% overall as a result of E10 fuel. The Government states that it should cut CO₂ emissions by 750,000 tonnes a year – the equivalent of taking 350,000 cars off the road.

Electric vehicles

The next step in this process will be the phasing out of petrol and diesel vehicles altogether and the move to electric and, for a while at least, hybrid. In November 2020, the Government announced a ban on the sale of new petrol and diesel cars and vans from 2030.

It won’t be long before employees are demanding electric vehicle points at their place of work. Let us know if we can help with setting that up!

Double appointment delivers new energy to CEC’s £3m sales drive

Control Energy Costs — 09/07/2020

A leading utility management specialist has strengthened its Business Development team with two key appointments as it looks to meet £3m turnover targets for 2020.

Control Energy Costs, which secured the prestigious Investors in People (IiP) accreditation earlier this year, has recruited sector experts James Malin and Andrew Stoker to support its drive for new accounts and further growth across manufacturing, retail, and leisure in the West Midlands and Yorkshire.

The duo join from Npower and World Kinect Energy Services respectively and bring with them significant experience in account management and a clear understanding of the challenges faced in energy management in a crowded marketplace.

They will work with Control Energy Costs’ team of analysts to work with an increasing number of companies in the region on addressing crippling utility costs, as industry and commerce try to recover from the economic impact of Covid-19.

Phil Ager, Managing Director of Control Energy Costs, commented: “Moving to a new office in 2018 was the first step in a three-year plan to increase sales by 50% and we are well on the way to achieving this, despite the current economic conditions we are facing.

“The appointments of James and Andrew give us real strength of knowledge on the Business Development team led by Liam Conway and having a presence in the West Midlands and Yorkshire means we are well placed to forge great client relationships and increase awareness of how we can help businesses with their energy requirements.”

He continued: “Our people are what really make us different to other energy consultants. We spend time understanding each individual business and how we can support them to operate more efficiently, be ‘greener’ and, importantly, achieve this whilst saving them money.

“We’re not a random voice on the end of phone. Our experienced Market Analysts and Client Managers are supported by a £250,000 investment in technology to ensure we can deliver the very best service, prices and strategies

“This is why the Investors in People accreditation is so pleasing for us as a business. It recognises we are committed to supporting the development of our employees and encouraging a culture that puts them at the centre of our organisation.”

Control Energy Costs offers an initial ‘no cost, no-obligation’ audit review of both current and historic energy arrangements, looking for opportunities to secure retrospective refunds and rebates, reduce non-commodity/third party charges and, where appropriate, advise on future energy contracts.

Other core activities include bespoke, flexible purchasing and hedging strategies for larger clients, siteworks and project management via a dedicated CEC solutions team, energy consumption, budget and forecasting tools to help clients to drive down energy usage, alongside traditional bill validation and invoice resolution services.

“Over the last twelve months we have supported hundreds of businesses to collectively save tens of thousands of pounds on energy costs, helping manufacturers, retailers, education and the leisure sector,” added Phil.

“We have also been operational throughout Covid-19 and, with energy prices lower than they have been for some time, now could be the perfect opportunity for firms to review their options and supply arrangements.”

He concluded: “The last twelve months have been an exciting time for us, with a rebrand and a new website, which is updated regularly with informative content to ensure we’re keeping clients and partners up to date with everything business energy-related.”

For further information, please visit www.cec.uk.com or follow @CECchat on twitter.

A silver lining to the energy crisis?

Control Energy Costs — 18/11/2022

While businesses are still struggling to find relief from the energy crisis, from an environmental perspective, a silver lining has materialised.

As a consequence of Russia’s war against Ukraine and their cutting off Nord Stream 1 – the main European pipeline for Russian gas - the UK and Europe are relying on Liquified Natural Gas (LNG) imports to meet increased demand. The restriction on gas supply and the subsequent surge in energy costs have accelerated business focus toward cleaner energy technology, improving the probability of tackling the next big economic crisis - climate change.

Increase in renewable energy

The impending UK target to achieve net zero by 2050, has placed immense pressure on businesses to adopt more sustainable energy technology. The UK was falling short on these climate goals before the emergence of the energy crisis.

The outbreak of Covid-19, however, dramatically impacted fossil fuel usage in 2020. For the first time in UK history, renewables accounted for more than 43.1% of the total electricity generated.

Renewable projects more attractive

While renewable technology has traditionally been regarded a costly investment, onsite generation has become a much more attractive proposition over time due to greatly reduced timescales of return on investment (ROI) for renewable projects, partly as a result of the increase in energy prices, which more businesses are taking advantage of

In addition to the climate change benefit of switching to renewable energy, onsite generation gives businesses more control over their energy and their costs. It can also provide a source of revenue.

Net zero infrastructure

The crisis has enabled many businesses to consider implementing clean energy generation onsite, within old or existing buildings or the generation of new infrastructure entirely via net zero buildings.

These are buildings which have no net carbon emissions during their construction and operation and offer significant potential energy savings.

A brighter future

The energy crisis has caused seismic changes to the energy sector; however, it has been a catalyst for business transition to renewable alternatives and progress toward climate objectives.

Maximising efforts to increase the share of renewable energy will improve the UK’s energy autonomy and could lead to lower prices. It will also help the sector become more resistant to future price shocks.

The good news is that a choice doesn’t have to be made between prioritising the global energy crisis or the climate crisis: businesses can tackle both symbiotically.

You can download our free green eBook for guidance on green energy and starting your journey to net zero.

Important notice regarding mandatory changes to electricity metering and charging

Control Energy Costs — 19/08/2016

In a working arrangement with our clients, we aim to keep utility costs to a minimum and offer advice on legislative changes which have an impact on expenditure. A forthcoming change may affect some or all of your electricity supplies depending on how they are currently charged.
What is it?
P272, as it is known, is a mandatory directive to ensure all monthly maximum demand meters (i.e. MPANs beginning with an 05, 06, 07 or 08 profile class) are settled on a half hourly metered basis.
Why?
Ofgem, the industry regulator, is changing how business energy usage is metered and billed. Under the new regulation, all businesses using electricity meters in profile classes 05 08 must have AMR meters fitted. These meters read consumption on a half hourly basis and allow for more accurate settlement of internal charging within the industry. All suppliers must be able to bill on this basis from November 2015 and everyone must be transferred by 1st April 2017.
For some customers the impact of this change will result in a fall in spend, while for others costs will rise it will depend on how much electricity you use and
when in the day you use it.
Action required
If you already have half hourly read metering in place no further action is required. However, if not, we strongly recommend you independently appoint an
accredited Meter Operator (MOP) so that you have access to your metering data. This may not necessarily mean a new meter, as it may be possible to
re-configure your existing meter. CEC are able to assist you in this process and help you secure competitively priced metering arrangements to ensure you are compliant with the new regulations.
If you opt not to appoint someone, your energy supplier will appoint their own MOP and pass this charge on which could be a lot higher than going direct.
To discuss option and seek advice please contact Liam Conway 07501221728

Simple tips for saving energy and money in 2023

Control Energy Costs — 26/01/2023

Unfortunately, while we said goodbye to 2022, the energy crisis remains and is likely an issue for the foreseeable future.

The Government has recently announced that there will be extended support for certain industries under the Energy Bills Discount Scheme, which will come into effect on 1^st April 2023 for a 12-month period, following the end of the Energy Bill Relief Scheme on 31^st March 2023.

Although the energy markets remain unpredictable for the year ahead, there are some changes you could consider to help manage your energy requirements and protect your business from future price shocks.

Energy Saving Week begins on 17^th-23^rd January 2023, so it’s a great opportunity to review your energy consumption and put future plans in place to improve the energy efficiency of your business.

We’ve put together five simple tips to help you save energy and money in 2023:

1. Control your business energy use and waste

Monitoring the energy consumption for your business is a great way to start making savings. If you know where your money is being spent, you can easily identify energy-saving opportunities and reduce energy waste.

If you’re a client of ours, we can help you monitor your energy by providing you with access to CECIL, a portal that shows you full and detailed data about your energy across electricity, gas and water, including contracts, billing and usage, all in one place. You can also check usage patterns and exceptions reporting e.g. a spike in energy usage outside of business hours could indicate something has not been switched off.

2. Switch to a flexible energy contract

Exploring the option of flexible energy purchasing can help ensure you are not exposed to take or pay obligations leaving you exposed to penalties for reducing your energy consumption. As you purchase energy in blocks for up to four years in advance, it can also help to protect your business against future price surges. For more information, you can download our flexible energy eBook.

3. Purchase energy-efficient equipment

According to the Department of Energy & Climate Change, the average business could reduce their energy bills by 18-25% by installing energy efficiency measures. Central Government or your local authority may provide tax incentives for purchasing energy-saving equipment for your business. For more information, you can download our Carbon Solutions Brochure.

4. Avoid energy waste

Sounds almost too obvious to mention but there are many ways you can avoid energy waste, simply by making small changes to daily habits. Some of the most basic measures still get regularly overlooked. Think about turning off non-essential lighting outside of business hours, and ensuring that all thermostats are set to an appropriate temperature (perhaps a degree or so lower than you had previously worked to).

It is estimated that the average business wastes 10-20% of its purchased energy.

5. Invest in clean energy

Renewable energy sources are a long-term solution to improving energy efficiency in addition to reducing greenhouse gas emissions. Businesses are being encouraged by the Government to invest in small-scale electricity generation via mini wind turbines, solar panels and on-site hydro sources.

Start saving now

Applying these tips can lead to big cost savings and it’s never too late to start.

If you need support with your journey, please get in touch with us on 01737 556631 and we’ll help you find the right solution for your business.

How CCA Could Help Manufacturers Save Thousands

Control Energy Costs — 14/10/2020

Made in Group members attended a virtual Q&A with Energy Expert, from Control Energy Costs, Liam Conway to learn more about Climate Change Agreements (CCA) and how they could help certain manufacturers save thousands.

Control Energy Costs are energy and water consultants, providing tailor made utility management, procurement and support services to businesses that have become disillusioned with using an energy broker or third-party intermediary. Patrons of Made in the Midlands and Made in Yorkshire, the firm works with 138 of the Made in Group members, offering service and advice on their energy usage and more.

A Climate Change Agreement (CCA) is a formal agreement whereby certain industries are eligible to pay a reduced climate change levy, otherwise, known as a CCL.

The CCL is an environmental tax for non-domestic consumers of energy and is charged against each kWh of energy used. Overtime, CCL has been slowly increasing, and this puts additional financial pressure on businesses that are energy-intensive.

In a video published by Control Energy Costs, they state that if a company used 1,000,000 kWh they would currently need to pay over £8,000 in CCL fees.

However, certain sectors can arrange to have CCA put in place and this gives them a significant reduction on the CCL part of their energy bill. For example, the £8,000 CCL would be reduced to £560 if there was a CCA in place.

The main manufacturing processes eligible are steels, ceramics, chemicals, food and drink, glass, plastics, and agriculture. However There are 53 sectors eligible to apply for CCA, Liam explained:

“Climate change agreements are put in place with an agreed energy sector reduction percentage. To benefit from the agreements businesses have to enter into their collective agreement and use less energy. Otherwise they would have to use the same amount of energy and produce more goods.”

Organisations such as the British Plastics Confederation, The Confederation of British Metal Forming and Surface Finishing Confederation administer CCA.

Mineralogical and metallurgical processes are slightly different. These aren't administered by trade bodies but rather a collective agreement. The processes eligible are outlined in a 15-page HMRC guide.

This allows you to pay a reduced amount of CCL moving forward, as well as claiming a back date of CCL charges that businesses have made.

With CCA in place manufacturers could be saving up to 92% on electricity and 81% on Gas. Mineralogical and metallurgical processes, could be saving a 100% discount on both.

Applications for CCA close by 30th November 2020 and Control Energy Costs can help with this by creating an application on a businesses’ behalf. On top of this the firm also manages the scheme compliance and reporting as well analyse energy consumption and offer advice on energy saving.

If you think Control Energy Costs could help you, you can contact Liam Conway, Head of Business Development, at liam.conway@cec.uk.com. Watch the Control Energy Costs Q&A on Climate Change Agreements.

5 Tips to Manage your Energy Costs For Manufacturers

Control Energy Costs — 13/04/2022

WATCH LIAM'S TIPS FOR MANAGING ENERGY COSTS FOR MANUFACTURERS

It’s no secret that the energy market has reached new heights recently, with many commercial properties reporting a 100% increase in their energy costs. This has been a result of a record increase in global gas prices, which has seen an energy price cap rise of 54%. Patrons of Made in Group and experts in the energy market, Control Energy Costs (CEC), have shared some invaluable insights into how businesses can manage their costs regardless of the current market conditions.

Patron of the Made in Group for the past six years, CEC works with around 150 members within the group. Liam Conway, Head of Business Development, has put together a video on 5 actionable tips on how businesses can ‘handle the heat’ when it comes to rising energy costs.

1. Be Proactive - don't bury your head in the sand and move it further down the to do list. This can cost significantly if it is left for later.

2. Know your figures - Understand the potential financial impact ahead of time, essentially reilitirating tip one - act now. Liam says “businesses that have been hit the hardest are those who haven't acted and therefore have become unaware of the rises. The more you know and the sooner you know, the better.”

3. If you are not buying flexibly, you would be wise to explore it now - Traditional fix contracts are no longer as appropriate as they once were for clients. Flexible deals however have a more strategic approach to risk and market conditions.

4. Explore the Made in Energy Club - Created by a Made in Group patron for members. The club was created to pool members' energy to access the wholesale energy market, giving you greater potential for reducing costs. It's also comforting to know that you are making the same energy decisions as others within the group.

5. Manage Consumption - Work with a partner who manages consumption, reports this and helps you drive it down. Control Energy Costs, for example, work with clients to help them start out on their net-zero journey. Liam says, “given the cost of energy, starting your journey to a carbon free future has never been more important.”

Find more about CEC by heading to their microsite here. To see how they can help, contact Liam on 07501 221728 or at liam.conway@cec.uk.com.

WATCH LIAM'S TIPS FOR MANAGING ENERGY COSTS FOR MANUFACTURERS

Upcoming webinar: Contract renewals in 2023

Control Energy Costs — 19/01/2023

Is your energy contract due for renewal in 2023?

Liam Conway, Sales Director at Control Energy Costs will be delivering a short webinar to cover the available options, helping you to make an informed decision about the future energy of your business.

Liam will cover:

The wholesale market has calmed a lot (it’s still crazy!) – what should you be considering for 2023 contracts?

The impact of the Energy Bill Discount Scheme – does that really affect your decisions?

Suppliers’ appetite for business

The webinar will be a 20-minute session, running at 9am and 11am on 24^th January, 31^st January and 6^th February 2023 - simply sign up for the session that works best for you.

To book your place, please visit cec.uk.com/renewal-2023. You will receive booking confirmation within 24 hours.

Rising Energy Prices

Control Energy Costs — 28/10/2021

Energy prices have soared by an alarming level since June 2021 amid the demand for power in different industries and supplier constraints. As economies around the world recover from the pandemic, energy prices continue to steepen.

Despite this, energy regulator Ofgem says that there will be further “significant rises” next year. Analysts have forecasted that domestic bills in the UK could rise by £400 or more next year if this issue is not solved.

With wholesale energy prices at record highs, energy suppliers that haven’t fully hedged requirements to cover their customer portfolio are left exposed to balancing requirements at a significantly higher price that they can sell it, either due to the price cap for domestic customers or existing contractual agreements with their business customers.

Dozens of domestic energy companies in the UK have gone bust. Last month alone, nine domestic energy companies went out of business, leading to over 1 million customers being moved to new suppliers and onto much higher rates.

What are the government doing about it?

Business secretary Kwasi Kwarteng has said “the key way we protect consumers is through the price cap”. The most the Government can do is provide support for industries and consumers. With many companies and households keen for an answer, Mr Kwarteng has said he is “looking for a solution”.

Energy suppliers have criticized the domestic energy price cap, denying that it will ‘protect’ households from an expected rise in costs. The chief executive of Together Energy, Paul Richards, told BBC Radio 4: “The price cap as a mechanism is not fit for industry, nor is it fit for customers.” Richards has stated although some customers were protected by the price cap, there was between £1bn and £3bn in costs due to failed suppliers that would be placed upon businesses and households.

So, no sign of the government intervening or offering much support for business in the current energy crisis.

Rise in wholesale gas prices

Wholesale gas prices have risen 250% since January. Businesses unable to afford soaring energy prices are worried about potentially having to close. Closure of business will leave thousands of people unemployed. The Director General of UK Steel, Gareth Stace, describes the lack of support for businesses as “frustrating”.

Companies all over the UK want a business price cap implemented, similar to the one in place for domestic consumers, on the amount that suppliers can charge them. This is crucial for businesses within energy intensive industries like steel-work, chemical plants and paper production.

The British Chambers of Commerce has called on an energy price cap to be introduced for small to medium sized companies struggling with rising gas prices.

A multitude of factors have impacted wholesale gas prices. The UK has comparably fewer gas storage facilities than other countries and being a net importer of gas, far more exposed to sharp price rises.

Lower than anticipated wind generation in 2021 has forced Britain to rely more on gas to produce power at a time when the UK is already facing supply issues. On top of that, there is a huge pressure on generators to not use fossil fuels and where they do, they have to buy carbon credits which have also gone up a huge amount.

How can we manage our energy prices?

Energy contracts have a larger impact on business costs than ever before and traditional fixed price contract management is becoming less effective at managing costs.

The key is to have a long-term energy management strategy designed to take advantage of forward pricing curves and reduce risk exposure. Buying all your energy at one time for a fixed period can leave you exposed to short term market conditions that affect the overall price of your contract.

Flexible energy contracts provide a long-term solution that gives you the ability to reduce the effect volatile conditions have on your overall costs by looking at the market 3 or 4 years ahead. Businesses can capitalize on market fluctuations and get the best price for energy by purchasing in blocks when the market is favourable. With energy prices showing no sign of easing, find yourself an energy partner and work with them to find a product that gives you the opportunity to manage any increases and make better purchasing decisions.

Manufacturing and moving towards net-zero

Control Energy Costs — 17/06/2020

The UK was the first G7 country to set legislation around net-zero emissions targets. The report produced by MakeUK and E.on on 19^th May looks at how the manufacturing is adapting and preparing for the ambitious targets in place.

This article provides a summary of the key findings and you can read the full report here.

The report highlighted that in terms of manufacturing:

90% are aware of the net-zero UK target in place

65% of those renegotiating contracts for energy found a better deal

40% of those who had invested in efficiency measures were reaping the benefits

Manufacturers are placing more importance on what they can do to achieve the net zero targets as the spotlight is upon them, not just from the Government, but also from investors and consumers.

Industry accounts for 21% of emissions, with manufacturing representing 11% of this total.

Technical ways to reduce emissions

Renewable on-site generation

Energy efficient equipment

Improvements to efficiency for buildings

Behavioral changes implemented from the top down

Data used to highlight efficiencies and problematic sites and areas for improvement

Energy pricing

60% of manufacturers reported that they had seen an increase in the cost of energy. The sectors particularly worried about increasing costs were metal, rubber, plastics, and chemicals.

What actions are being taken by manufacturers?

The main action is contract renegotiation and switching to a renewable energy guarantees of origin (REGO) contract with their energy supplier. Using more energy efficient equipment is also high on the list of changes being implemented as is ensuring buildings are as efficiently run as possible.

Climate change agreements

Although manufacturers are taking measures to improve energy efficiency, the report highlighted that only 1% of those surveyed had a climate change agreement in place. The Government has recently extended applications for climate change agreements (CCAs), so those without one in place should consider this as a priority. To find out more about CCAs, view our explainer video here

Energy efficiency driving profits

40% of manufacturers surveyed reported financial benefits and increased profit margins as a result of implementing energy efficiency measures. Any manufacturer with energy intensive processes was more likely to report this as a positive outcome.

Low cost measures can drive efficiency

There are several low-cost changes mentioned in the report such as

Replacing lighting with LED lighting

Purchasing renewable energy

Putting sensors on the production line so conveyor belts only operated when necessary

Capturing heat from production to heat water

There is strong sentiment that sustainability and energy efficiency can be a focal point as part of a ‘green recovery’ which includes fewer journeys to a traditional office or place of work and more focus on the environment and green credentials for businesses.

If you are part of the 99% of manufacturers without a climate change agreement in place, why not get in touch with the team to see how we can help?

MiTM Members - Energy Brokers Abusing Trust

Control Energy Costs — 10/02/2017

In the last week or so I've had conversations with 3 MiTM members about how energy brokers have essentially abused their trust and misrepresented energy savings whilst building in huge commissions which the end user always pays for.
If you're being urged to sign an energy supply contract via an energy broker and you don't know how much they're earning out of it, the answer is probably a lot more than you think. I've had countless conversations where clients believe the broker is earning a few hundred or a few thousand from the deal when in reality it's been considerably more.
If you're constantly being told now is a good time to go to market, is it really? If you're signing up to 3 year contracts, why? Who's benefit is that really for?
If you're signing a 3 year contract and then 12 months in the broker is coming back looking to re-sign a new contract starting 24 months in advance, whose interests are they looking after?
I've lost count of how many MiTM members along with our wider client portfolio are being 'shafted' by energy brokers.
There is no cost nor any obligation to engage with us, even if you just want a second opinion before committing to something please get in touch. We provide you with a transparent view stripping out brokers commission and misrepresentation of actual costs. I've seen so many brokers tenders which leave off so many of the charging elements they're simply 'hoodwinking' clients into something which isn't right.
Liam Conway
liamc@cec.uk.com
07501221728

Forensic Cost Recovery

Control Energy Costs — 05/12/2019

It is understood that historical energy billing can be flawed. This can be for various reasons; the correct tariff might not have been applied or estimated billing might have been wildly inaccurate or there might even have been faults with the metering unit. There are any number of reasons that the bill you receive might not accurately reflect the energy you have used.

How many invoices are incorrect?

It is thought that there is over a billion pounds in excess charges to be reclaimed across the energy networks.

Why should you consider an energy audit?

Undertaking an audit of your bills yourself is something that might be considered both onerous and complex and therefore many businesses aren’t sure where to start. It is, therefore, a service that is offered by most third-party intermediaries, usually on a no-win-no fee basis with the company undertaking the audit taking a percentage of the cost recovered as the fee for their efforts.

On the basis that there is nothing to be lost from a forensic look into your historical billing and usage, it should be something that businesses should consider, especially if there is no downside for doing so.

The forensic approach

The first part of any audit of payments and invoices involves the collection and collation of data, this will be used to begin the process of analysis and identification of data that isn’t reflective of the pattern of usage that has been built up.

If any discrepancies are identified, then this should be taken up with the supplier involved.

If you have been overcharged for energy, then there will be the recovery of not only the amount paid for the energy, but there might also be recoverable money from VAT overpayments and other additional charges that were based on the incorrect usage. These charges might include:

DNOS

TNOS

VAT

Environmental levies

If you have been overcharged, then recommendations should be made to mitigate the risk of further inaccurate billing and payments made for energy, any company providing a cost recovery service should ensure that this is a part of the service they offer.

What you should look out for if it seems to good to be true

Terms and conditions and contract – have you looked carefully over the contract and are you happy with the percentage that the auditing company will take from any costs recovered? Does it seem fair? Are you happy that you are in safe, capable and trustworthy hands?

Who will be looking after your cost recovery project and do they have experience and knowledge within this specific area of work?

How long has the company been in business and do they have appropriate knowledge and experience to offer a forensic approach to recovery? Are they on Companies House and is the information given accurate and up to date?

To find out more about the forensic cost recovery service we offer contact 01737 556631.

100% renewable energy

Control Energy Costs — 09/12/2019

The benefits of 100% renewables are being taken seriously by businesses and these considerations have been pushed to the forefront by legislation and reporting requirements that have been implemented by the Government such as Streamlined Carbon Energy Reporting requirements.

So, if you are looking at 100% renewable energy how is it created?

100% renewable energy is created from sources such as wind, solar, hydropower and energy from waste. These renewable energy sources account for approximately a third of electricity used in the UK (source: Digest of UK energy statistics)

Is it more expensive?

The technology and infrastructure set up costs behind renewable energy are high, therefore presently yes, renewable energy comes at a higher cost. This cost is reducing and will hopefully eventually fall in line with the cost of non-renewable energy.

The cost should also be viewed in a more holistic way, if you are a business and your clients and customers are highly engaged environmentally then the benefits of going 100% renewable can create great social stories and you can really shout about the reduced impact your business is having on the environment.

This is demonstrated by the rise in brands that are focusing on reducing their environmental impact. The fashion retailer Zara recently announced their sustainability and environmental impact goals, and this has led to positive exposure throughout the fashion world for the brand.

Are there businesses using 100% renewable energy?

Yes, 100% renewable energy is being taken seriously by some of the world’s largest corporations. The RE100 are the world’s most influential companies, committed to 100% renewable power. You can find out more about who they are, what they are committing to and how they are supporting and going about changes to how they operate here.

What are the benefits of 100% renewable energy?

SECR states that any carbon efficiencies and anything your business is doing to reduce this must be reported. This reporting is a narrative description and will include, for example

The installation for smart meter and energy monitoring tools

Moving a fleet of vehicles to electric

Behavioural changes

Changes to buildings making them more energy efficient

Although SECR doesn’t explicitly state that you should be reporting on how much energy your business is using that is renewable, the reporting requirements demonstrate that businesses should be focused on reducing the impact they have on the environment.

The future of renewable technology

Control Energy Costs — 05/06/2023

Renewable technology is continually evolving to meet the ever-growing demand to achieve net zero.

Let’s take a look at some of the potential renewable technologies that will innovate the way businesses generate energy.

Underground Energy Gravity Storage (UEGS)

Solar and wind generation are considered the frontrunners in renewable energy generation. However, both of these technologies are variable when subjected to less favourable weather conditions such as bad weather, low light and periods of low wind flow.

Excess energy is typically stored in lithium-ion batteries, which is highly flammable and can contaminate water supplies if leaks occur. They also have limited storage times.

UGES offers a solution to this, as it enables excess energy to be stored and discharged for future use. The process involves packing large quantities of sand into containers and lowering them into mine shafts via a central cable for storage deep underground. As the sand is sent deeper into the mine, the cable spins a series of rotors, generating electricity. To store the electricity, sand is elevated from the mine and deposited in upper storage sites on top of the mine.

With the current rise in energy demand, this is especially important to sustaining a consistent renewable energy supply, preventing blackouts or energy shortages.

Space-based solar power

This sounds like science fiction, but could actually offer a very real solution. It involves positioning solar panels on satellites, enabling them to receive energy from the sun and transmit this energy to Earth via either microwaves or lasers. Receivers on earth take this energy and store it in battery plants, where it can be supplied to homes and businesses.

These space-based solar farms could generate energy 24 hours a day, resulting in 40 times more energy than Earth-based solar power.

Solar windows

This ingenious innovation involves integrating photovoltaic cells into the glass, allowing sunlight to pass through and converting it to electricity. The photovoltaic cells can be either transparent or semi-transparent.

Airborne wind energy

Turbines are mounted onto flying devices, such as kites or drones, leveraging the stronger and more consistent winds found at higher altitudes. The electricity is generated onboard and transmitted down a specialized tether to the ground.

They offer a more dependable source of wind generation in locations with limited land availability and overcome the issue of low wind speeds.

Floating solar panels

The concept of floating solar panels relates to panels mounted on platforms that float above bodies of water. These platforms are anchored to the bottom of the seabed. The first floating solar system was launched In Japan in 2007 and has gained significant traction since then.

They reduce the space taken on land and reducing water evaporation from reservoirs (avoiding disruption of the view).

Wave power

Wave power exerts enormous energy. With oceans making up 70% of the Earth’s surface, it makes sense to utilise this energy on a large scale.

A test facility— known as PacWave – has been set up in the US and is due to be operational in 2025. It will be used to convert the power of waves into onshore electricity.

Ocean thermal energy conversion (OTEC)

This involves drawing up colder water from deeper parts of the ocean. As it meets the warmer surface water, this flow of water goes through a heat exchange process, which drives a turbine to generate electricity.

The technology is expensive so there is currently only a small OTEC plant operating in Hawaii, but climate concerns could generate more funding.

Noor Ouarzazate Solar Complex

Noor Ouarzazate in Morocco - the largest solar farm in the world - uses half a million curved mirrors to direct sunlight towards tubes full of synthetic oil, converting it to vapour. A turbine uses the vapor to generate electricity, providing power for 1.3 million people.

We will be covering more on this technology next month.

Start your journey to net zero

To find out more about renewables and starting your journey to net zero, you can download our green eBook.

The future of hydrogen cars: navigating the road ahead

Control Energy Costs — 20/11/2023

The automotive industry is at the forefront of a major transformation, with a focus on developing sustainable and eco-friendly alternatives to traditional fossil fuels. One of the contenders in this race is hydrogen, a clean and abundant energy source. However, the path to mainstream adoption of hydrogen-powered cars is not without its challenges.

Hydrogen for domestic use

The production of hydrogen on a large scale demands substantial amounts of electricity, necessitating extensive storage facilities. The potential use of hydrogen in domestic boilers is a development that means consumers could charge their cars at home.

The concept revolves around delivering hydrogen through existing gas networks, eliminating the need for large-scale storage. If this becomes a reality, homeowners could not only power their boilers with hydrogen but also use it as a convenient fuel source for their vehicles right from the comfort of their homes. This is a promising step towards hydrogen being a long-term solution to address the energy needs of both homes and vehicles.

Hydrogen for commercial use

Trials of hydrogen-operated boilers for commercial applications, such as for businesses and public sector bodies, are also being carried out. In South Wales, Air Products is making a £6.5m investment in a hydrogen filling station at its Llanwern hydrogen facility. The station, which is expected to be operational by early summer 2024, will make 1.5 tonnes of fuel-cell grade hydrogen available daily, with the capacity to serve a fleet of 100 buses or 50 trucks.

Toyota's track record

Toyota has been exploring the possibility of liquid hydrogen as a car fuel. In May 2023, Toyota showcased its liquid-hydrogen-powered Corolla at the Super Taikyu Fuji 24 Hours Race in Japan, marking the first-ever race featuring a vehicle fuelled by liquid hydrogen.

Toyota has also commissioned Yamaha to develop a 5-litre V8 engine powered entirely by hydrogen, reflecting a commitment to expanding fuel options for internal combustion engines. Toyota hopes to use the severe conditions of racing to identify issues with the car that cannot be found in the research stage. Its goal is to speed up the development of commercial sales of hydrogen cars.

The race against electric vehicles

The timeline for the widespread adoption of hydrogen cars faces competition from the already established electric vehicles (EVs). EVs have gained significant traction, with well-established charging infrastructure, improved ranges and advancements that address the limitations previously associated with them.

By the time hydrogen cars become a viable option, EVs might have solidified their position as the number one choice for consumers and businesses.

Hydrogen beyond passenger cars

While hydrogen-powered passenger cars may face a longer timeline for mass adoption, other sectors of transportation are exploring hydrogen as a more immediate solution.

Hydrogen buses and lorries could be integrated into public transportation and logistics networks sooner than their passenger car counterparts.

Hydrogen is also being tested in off-road applications, such as in the development of technology for heavy-duty commercial vehicles like earth movers. This diversification allows hydrogen to make a meaningful impact in reducing emissions and fostering sustainable practices within the transportation sector.

The future of hydrogen cars is undoubtedly promising, but the journey towards widespread adoption is marked by challenges that need to be addressed. As the automotive industry continues to evolve, a blend of innovative solutions, public awareness and policy support will determine the role hydrogen plays in shaping the future of transportation.

Want more information? Get in touch.

Streamlined Energy and Carbon Reporting (SECR) webinar

Control Energy Costs — 28/11/2019

We are delighted to be holding a webinar in partnership with Energise covering Sreamlined Energy and Carbon Reporting (SECR) on 15th January.

We do hope you are able to join us.

SIGN UP

Building Network Operator (BNO)

Control Energy Costs — 26/01/2022

Many of our clients have businesses in buildings where their electricity is supplied by a BNO arrangement. The purpose of this article is to give you information on the obligations placed on you and your landlord and whether any practical work needs to be undertaken on the electrical installation.

What is a building network operator (BNO)?

A building network operator, also known as ‘BNO’, is the organisation that operates or owns the electricity distribution network within a multiple occupancy building, between the intake position and customers’ installations. A BNO may be a developer, building owner, landlord or similar function in control of a building infrastructure at that given time.

At Control Energy Costs, we work directly with independent utility connection specialists with expertise in BNO network delivery. These specialists can guide clients who have large mixed occupancy buildings and help them identify that they are indeed a BNO, whilst letting them know what responsibilities they have.

Across the country, many building owners remain unaware that they are actually a BNO, due to the lack of knowledge within the industry.

If you own a mixed occupancy building with several different electricity meters in it and need assistance, we will guide you through what needs to happen next to ensure you are covered legally, making sure your building is operating as it should.

How are our services useful to a BNO?

If all your organisation’s duties as a BNO - including safety considerations - are not fully discharged, there is a genuine risk of electrical fault including fire or even risk to life, complete with attendant legal exposure. To put it simply, our services can help you ensure regulatory compliance, as well as keep you and your building users safe. Avoiding safety and risk measures can ultimately lead to a charge of corporate manslaughter if situations are not dealt with culpable conduct.

The BNO design standard does also offer flexibility as well as risk. If you are a BNO, you can reconfigure the installation within your building internally with the right support. As a business, you will have a certain degree of autonomy over the management of your electricity supplies. You will be less beholden to local monopolistic distribution companies, freeing up improved project delivery times, and allowing you more control over the architecture and layout of connections within your building.

How can we help?

Our consultations are beneficial as we manage the legal and safety risk for the clients. We take the headache away from the BNO process by mitigating risks so you can focus on core business. Our aim is to understand your exposure and what it is you need, apply our knowledge and then explain how we can support you.

What is an out of area Distribution Network Operator?

Control Energy Costs — 30/03/2023

Generally speaking, your Distribution Network Operator (DNO), will be determined by where in the country you are located.

Within the mainland UK, the business of electricity distribution is divided between regions, with different companies serving different areas. As of March 2023, these are as follows:

Southern Electric, serving North Scotland and Southern England

SP Energy Networks, serving Merseyside, Cheshire, North Wales, North Shropshire and Central and Southern Scotland

Electricity Northwest, serving Northwest England

Northern Power Grid, serving Yorkshire and Northeast England

UK Power Networks, serving London, Southeast England and Eastern England

Western Power Distribution, serving East Midlands, West Midlands, South Wales & South West England

However, in certain circumstances, you may find that your site is supplied by one of the above providers, despite being outside their geographical area. This is referred to as an “out of area DNO.”

How does this happen?

An alternative name for an out of area DNO is an embedded network.

In effect, a DNO sets up its own smaller network within the wider geographical area owned by another.

The embedded network will take a connection from the “host” or regional network but operate the smaller network under its own authority. A similar relationship would be that between a concession stand in a supermarket or department store.

This typically happens when a large-scale development project is commissioned, meaning installation of a large number of supply cables, which form part of a wider network. Shopping centres, for example, can often exist within embedded networks. Once built, ongoing maintenance of the network remains the responsibility of the “out of area” DNO.

How does this affect me?

For all practical purposes, this makes no difference to the day-to-day energy user.

You are free to change your electricity retailer as you normal, and your section of network is still bound by strict standards of maintenance applied by the industry as a whole.

In the event of a power cut, you will still be served by engineering teams who will attend the network to resolve fault situations.

If you are served by an embedded network and need to confirm who to contact in the event of a power cut, then you can use the same industry tool as all other energy users called Power Cut 105. You will need to confirm who your DNO is and provide their contact information.

CEC expands into Yorkshire with £500,000 energy saving boost for local manufacturers

Control Energy Costs — 13/06/2019

One of the UK’s leading utility management specialists is setting its sights on further expansion after setting up a new Yorkshire operation.

Control Energy Costs (CEC), which works with hundreds of manufacturers across the country every year, has set up a team of analysts to work with local companies on addressing some of the crippling energy costs that are plaguing industrial growth.

It is an approach that is working, with more than 30 Yorkshire companies already signed up, receiving potential savings of over £500,000 to date.

The firm believes there is now significant opportunity to support businesses coming out of 24-36 month contracts that are likely to face up to 50% cost increases due to the rising price of energy.

CEC also offers them access to a purchasing collective that allows manufacturers - usually too small to take part - the opportunity to benefit from flexible purchasing and energy management.

“This investment in creating a dedicated team and hot-desking space is our way of proving our commitment to the region,” explained Liam Conway, Head of CEC.

“Industry is our big focus and we have enjoyed a lot of success in the West Midlands and the South East, helping firms reduce their energy costs through careful planning, negotiating the best possible deals and smart energy management.”

He continued: “There are some fantastic firms at the cutting edge of engineering and innovation in Yorkshire and we know from talking to local business leaders that there is an appetite for a reduction in energy bills and processes that are kinder to the environment.

“The initial investment has been in recruiting analysts that are experienced in the sector and they will be responsible for working on the ground in the area. Over time, we’re also looking at turning our hot-desking facility into a permanent base in the region.”

Control Energy Costs offers an initial ‘no cost, no obligation’ audit review of both current and historic energy arrangements, looking for opportunities to secure retrospective refunds and rebates, reduce non-commodity/third party charges and, where appropriate, advise on future energy contracts.

Other core activities include providing accurate consumption reports in order for clients to drive down energy usage, budget reporting and forecasting, flexible purchasing and hedging strategies for larger clients.

As part of its expansion into Yorkshire, it has agreed to become a patron of the Made in Yorkshire Group, which represents hundreds of members by providing advice, networking, digital platforms and lobbying Government on crucial issues.

Liam concluded: “We have enjoyed a lot of success with the Made in Midlands collective, helping over 80 of their companies over the last three years.

“It’s a proven model and a fantastic way for industry to work together to grow and create wealth – we just like to play a small part by ensuring members have access to the best energy deals and advice on management.”

For further information, please visit www.cec.uk.com or follow @CECchat on twitter.