AIM Energy Action Group Update

AIM Energy Action Group Update
AIM Energy Action Group Update

The AIM Energy Action group continues to assist members with energy related challenges, covering procurement, supply contracts, metering, new connections and asset transfers. We continue to assist existing and new members as issues arise for them requiring assistance. As well as a steady stream of contract renewals other topical issues include:

  • Our annual buying basket
  • Changes of tenancy and Asset transfer issues relating to utilities
  • Green power supplies
  • Removal of Economy Seven meters as needs and heating technology change
  • The rising cost of non-commodity costs in the electricity bill
  • Metering changes as a result of Ofgem’s ‘P272’ legislation

Buying Basket

This year’s Buying Basket is comprised of approximately 27 gigawatts of gas and electricity with some 400 contracts from 140 members. The bulk of the basket is comprised of charitable and not-for-profit organisations, with a good percentage of small businesses included too. We’ve sought the best available prices for members, using group buying power to attract the best energy rates. After weeks of negotiation from initial tenders to ten suppliers, we are now sending out contracts to members and talking through their renewal options.

Changes of tenancy and Asset Transfers

When ownership or management responsibility for a building transfers from one organisation to another, there is a normally simple but important process to follow for each utility supply. It’s important to follow the process to avoid an ‘out of contract’ situation and organise the best buying prices available. Although normally simple, we have had a number of members who have found their utilities have not been smoothly managed in the transition leading to numerous billing related issues. This is particularly common when the outgoing tenant is the local council.

Green Fuel sources

Most suppliers offer green sources of electricity and the environmental topic is not going away. In some cases, funding may be linked to environmental improvement policies and a green fuel supply may be a requirement. If this is becoming important to you or your stakeholders don’t hesitate to let us know.

Economy Seven meters

Some properties have a legacy of one or more Economy Seven meters which provide cheap rate electricity for night storage heating purposes during the night. They are increasingly being replaced as heating systems get updated. They can produce minor complications with energy suppliers, some of whom no longer supply them. If your heating needs have changed and you need to make changes to your metering, please contact us.

Non-commodity costs

The energy portion of an electricity bill is now typically 45%, with the rest arising from grid and distribution costs, metering and environmental levies and taxes. These are designed to increase grid capacity, prevent blackouts at peak times and fund increases in renewable generation capacity. The cost of these elements is growing year on year so as time passes their effect is becoming more and more significant. This year we are seeing more costly electricity prices and these are set to go on rising in years to come. The logical conclusions are to seek energy efficiencies and renewables to reduce reliance on imported electricity.

Ofgem P272 Half Hourly metering

This is a now a ruling that all maximum demand electricity meters in the 05 to 08 profile classes need to be converted to ‘Half Hourly’ measurement class. This legislation is beginning to bite now, with suppliers organising these changes on behalf of customers. Suddenly, the affected meters are incurring more expensive standing charges, the need for costly Meter Operator (MOP) Agreements and capacity charges (kVa). We are busy explaining the process to members and seeking the best way of mitigating these costs so if you are affected or concerned by P272 please give us a call.

The AIM Energy Action Group is here to assist members with these and other energy related matters. Please feel free to contact us if we can be of assistance. Please visit the AIM Energy Action Group webpage

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