What Options do Businesses have?
As CSNA business owners are coming to terms with increased costs in every aspect of their business we have asked our energy consultants Green Procurement to explain to you the current options you have in the Irish electricity supplier market for SME customers.
1. Fixed Contract – (12, 18, 24 Month)
A fixed contract has been the most common option in the Irish market for years. A set rate per kWh for the length of your contract.
Suppliers look at the gas market forward curve for the 12 months and set a price with risk added to produce a fixed price.
Pros
Budgeting
Cons
Risk added
Higher than out of contract currently due to European gas crisis.
2. Out of contract standard variable – (ongoing)
A standard variable OOC is a default rate that a business will pay when their contract is not renewed. This price is variable as it can change at the end of the month without warning from the supplier. Risk is also factored into the price. The OOC price has been lower than in contract since the start of the year and many members have stayed out of contract as it has been the more feasible option.
Pros
currently lower than fixed
Cons
Budgeting
Variable and susceptible to change
Higher Standing charge
3. (New) SME Wholesale – (12 Month)
Energia have come to the market to offer a product to SME market that was only available to LEU (Large Energy Users) customers. Wholesale is a complete variable product tracking the gas price through the month and charging the market price on the last day of the month.
Energia are also offer the option to switch to a fixed Energia price for 12 months when they become available again.
Below are the prices for the past months on wholesale:
Pros
Low Standing Charge
Benefits from falling gas market
No future Risk factored into price
Option to switch to Energia 12m fixed contract
Cons
Budgeting
Fully Variable and susceptible to change
We have asked Green Procurement to make a dedicated consultant available to any CSNA member seeking additional information and advice. Below, please find contact details.: –
Darragh Geoghegan,
Consultant,
Green Procurement
Unit A2, M4 Business Park, Celbridge, Co. Kildare – W23 PW2K
T: +353 1 44 12717 | M: +353 87 2576842
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