The role of the independent energy supplier
June 1st 2008

With oil prices hitting record highs, energy management and purchasing are being pushed up the agenda for businesses.Charlie Crossley Cooke, md and founder of Opus Energy, explains that businesses in search of innovative solutions can benefit from teaming up with smaller, independent energy suppliers.

Companies that are coming to the end of their existing two or three year energy contracts often start to experience a more challenging energy purchasing environment than they are used to due to the considerable price hikes which have taken place while they were under contract.The good news is that, despite the market being more volatile than two years ago, new and innovative technologies have become available that can give businesses much greater control over their energy usage and even access to wholesale market prices.

Smaller, independent electricity suppliers like Opus Energy have chosen to pioneer these alternative products and purchasing methods to further succeed in the competitive electricity market. By the nature of their size and market share, independent suppliers are more likely to break away from the historic fixed pricing protocol and offer innovative and competitive solutions that companies should be readily taking advantage of.

Energy pricing and purchasing

Energy buyers are increasingly keen to take more control over their portfolios, and look beyond the medium of fixed tariff pricing.

Smaller energy suppliers are responding to customer demand for greater control over electricity procurement and pricing.By evolving their offering to allow companies more direct access to wholesale energy market prices, independent utility companies like Opus Energy are increasing the transparency of pricing and putting customers in control of what they buy.

Introducing Opus Evolution Launched just six months ago Opus Evolution is,we believe,a market first.

Using new technology, pioneered and offered exclusively by Opus Energy, the service plan allows buyers with multi-site portfolios direct access to wholesale energy prices – something that was previous only available to the larger energy consumer.The service is currently unique in the energy market to this type of customer and offers the definitive alternative to the fixed price plan traditionally offered by each of the 'big six'electricity providers.

Using a secure online web platform, customers can access the real time energy market to purchase bundles of electricity at the current market price. Customers are given the freedom to choose how much electricity they purchase each time and can monitor the prices in the energy market to decide the best time to buy.

This hands-on purchasing method provides considerable advantages to the buyer, such as being able to implement strategic purchasing strategies involving multiple purchasing points throughout the year.

Smart metering

One of the most innovative new technologies on the electricity market is the smart meter.Smart meters can store up to a year's worth of half-hourly readings, transmitted monthly to the energy provider by a GSM mobile messaging system.With access to energy consumption levels across the portfolio, companies can monitor and mediate their energy usage.Research by the Carbon Trust has suggested that, used as part of an energy saving initiative, smart metering technology can assist with the reduction of the average business'consumption by 12.3% a year.

It is no surprise that smart meters have quickly become popular with businesses looking to streamline their overheads.As a small, independent supplier, Opus Energy has been able to respond quickly to market demand and become the first company offering free smart meters to all of its customers.

This is another example of how UK businesses can capitalise by working with independent energy suppliers.Where as larger suppliers are prohibited by size and administration costs from reacting efficiently to market demand, independent companies have the flexibility to respond quickly and pass the benefits of the latest technology directly to customers.

The way forward

Smart metering and Opus Evolution are two solutions that can address the issues faced by energy buyers today and can be expected to grow in prominence within the energy market over the forthcoming years.

Small independent suppliers, such as Opus Energy, are currently at the forefront in pushing forward these alternative solutions. Flexible purchasing and metering solutions can be a key way for companies to optimise their energy portfolio.We would urge that energy buyers and businesses alike do not overlook those smaller energy companies with the drive and flexibility to offer the most innovative solutions for businesses in these volatile times.

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