How Unaligned Energy Contracts Could Be Costing You More

When you operate across multiple locations or buildings, it’s likely that you will have multiple gas, electricity, and water contracts in place.

While this may seem like the easiest solution at the surface level, the reality is that you’re wasting money that you could otherwise invest in your manufacturing business.

And with the manufacturing sector using 39% and 35% of the UK’s natural gas and electricity respectively, your energy bills can quickly mount up.

Join us as we share five reasons why unaligned energy contracts can cost you money and how aligning them can yield significant benefits for your business.

1. You Waste Time on Unnecessary Admin Work

Unaligned contracts mean several energy bills and contracts to review and potentially multiple direct debits to process.

While the upcoming launch of the Market-Wide Half-Hourly Settlement (MHHS) may mean you no longer need to take manual meter readings, you still need to audit your readings to make sure they’re accurate.

All this administrative work converts into working hours, which in turn, converts into money.

Aligning your contracts means your team can focus their efforts on growing your business.

2. You May Overlook Potential Issues and Opportunities

When there’s a lot of work to do, it’s only natural to focus on ‘firefighting’ issues rather than being proactive.

If you have a lot of contracts to manage, it may mean you miss out on identifying errors that may cost your business money, like overpayments and estimated billing.

Similarly, as you’re allocating resources into handling several energy contracts, you may miss out on chances to optimise your energy use and save money.

Aligning your contracts makes it easier to spot issues, claim overpayments, and become more energy efficient.

3. You Miss Out on Renewal Opportunities

Different contracts have different renewal dates, which makes it harder to find a new energy supplier.

After all, you don’t want to spend time and effort renewing your contract, only to have to do it all over again in a few weeks.

4. You Are More Vulnerable to Market Volatility

The energy market is highly unpredictable at the moment, due in part to international events like the Israel-Iran conflict and the closure of the Strait of Hormuz.

While this volatility affects everyone, you may be more susceptible on unaligned contracts. Multiple contracts make it harder to plan ahead and may mean you are stuck on more expensive contracts.

Aligning your contracts also makes it easier to react to world events.

5. You Risk Out-of-Contract Rates

When your fixed-term energy contract ends, you get placed on an out-of-contract rate, which means you can end up paying up to 80% more for your energy.

If you have multiple unaligned contracts, you increase the chance of not knowing when each individual contract is up for renewal.

Aligning your contracts with one renewal date means you can take action to arrange a new contract ahead of time, meaning you don’t waste money unnecessarily.

Book Your Free Energy Contract Review Today

Aligning your contracts, no matter what you manufacture, is a smart move.

Not only do you save money, but you save time and resources, and become more appealing to stakeholders.

If you’re considering aligning your contracts but aren’t sure where to start, we can help.

Our team has several years of experience aligning multi-site contracts. And with access to several suppliers, we can find the right one for your specific needs, seamlessly transitioning you onto your contract of choice.

We can also identify other money-saving opportunities for your business where possible, from implementing energy monitoring to helping you set up a Climate Change Agreement (CCA). 

Get started today with a free energy contract review.