ENERGY FLEX PRICING
WHAT IS ENERGY FLEX PRICING?
For those spending over £250k per year on their energy, Flex Pricing allows businesses to take advantage of price fluctuations over the lifetime of the contract by making purchases when the wholesale energy price is favourable and considerable savings can therefore be made.
HOW DOES IT WORK?
Flex Pricing splits your bill into two distinct areas, commodity costs and non-commodity costs.
Non-commodity costs are known as pass through charges like:
• TNUoS & BSUoS
• Renewable Obligation
• FiTs Charges
The above charges can be stripped right back making the overall contract cheaper straight away as the supplier puts a lot of margin (for profit) into the non- commodity costs on fixed term contracts.
Commodity costs relates to the unit price of the energy (raw commodity) where there is an opportunity to purchase ‘chunks’ of energy over the lifetime of the contract, when the price is favourable, therefore saving you money over a Fixed Price Contract.
Flex Pricing relies on the expert interpretation of the energy market, deciding when is the best time to make a purchase and requires considerable market knowledge and skill.
- Potential to make significant cost savings
- Energy purchased when the wholesale price is favourable
- Not dictated to by the market
- Non-Commodity costs are stripped back
- Purchasing decisions are recommended based on informed market intelligence