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Make savings by reviewing farm and estate energy bills

2 mins

Many farms and estates could make significant savings on their energy and heating bills by reviewing supply contracts that have been allowed to run on without being reviewed.

Over the past 10 years, business users will have seen electricity costs increase significantly. The Department for Business Energy and Industrial Strategy (BEIS) started recording data in 2004 from eight of the largest gas and electricity suppliers in the UK. Since 2007, small businesses have seen an average price rise of 43%, with large industrial consumers seeing a 75% increase.

Ofgem, the industry regulator for the gas and electricity markets, also estimates that around 41% of businesses have never switched energy supplier and, as a result, are on ‘deemed rates’. Deemed rates are typically 40% higher than contract rates and are a direct result of not renewing supply contracts after they have expired. The average rate of electricity is currently at around £0.16 per unit – while the average deemed rate is around £0.25 per unit.

REVIEW FARM ELECTRICITY BILLS

It is estimated that approximately 50% of farmers and landowners are unaware of the price that they currently pay for their supplies, suggesting that many are paying more than they need to. During the current lockdown period, it is possible that individuals may have more available time to spend in their home office, presenting a good opportunity to review copies of electricity and heating bills.

We were recently asked to review an electricity supply contract for a large dairy unit in North Devon. After some comprehensive market analysis, we managed to secure a fully fixed price for three years that saved the farmer more than £6,000 in the first year.

Electricity and gas supply contracts are made up of more than just the headline unit price.

There can be dozens of other charges buried within the rates and that’s before we even consider the non-commodity costs. Varying contract lengths, types and exit clauses all need to be carefully considered before signing up to a new supply.

HOW STRUTT & PARKER CAN HELP TO CUT ENERGY COSTS ON FARMS AND ESTATES

If your annual power bill is higher than £5,000, Strutt & Parker is well placed to undertake such a review on your behalf and would be happy to discuss this with you further.

In order for us to complete our assessment, we require:

  • Supply address
  • Billing address
  • Copy of your latest electricity bill which includes MPAN number
  • Current contract end date
  • Letter of authority

We are also able to work with our energy experts to review heating oil, mains and LPG Gas costs. We simply require the following information:

  • Volume in litres per annum utilised 
  • Size of tank and frequency of delivery
  • Current price
  • Location
  • Name of supplier

Please contact Lauren Gibson-Green on 07725 660028 or lauren.gibson.green@struttandparker.com to discuss further.

Lauren Gibson-Green
Director, Land Management
Cambridge
+44 1223 459490
Send a message to Lauren Gibson-Green
2 mins

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