News / Flex Combi – flexibility and certainty, combined

Flex Combi – flexibility and certainty, combined

1st July 2019

Buy wholesale electricity at live market prices while enjoying the certainty of fully fixing your Third Party Costs

In these times of political and economic uncertainty, fixing any of your business costs – including your electricity – can help bring a degree of predictability each month. However, certainty often comes at a premium, which is why organisations that consume large amounts of power may prefer to take a more flexible approach to their energy management.

Third Party Costs (TPCs) – which are non-energy costs – typically amount to around 60% of the total cost of an electricity bill. By working with electricity suppliers like Haven Power that offer flexible products, it’s possible to fix these TPCs and gain budget certainty while simultaneously retaining power purchasing flexibility. That’s because certain flex products allow higher consumption businesses to track the electricity market, buy when they want to, and take advantage of potentially lower wholesale prices.

Find out how you could benefit below:

While companies not used to energy trading may think it appears daunting, it can be made simple – and deliver associated advantages. Whether your business has trading experience or not, Haven Power’s newly launched Flex Combi plan could help you reap those benefits.

Putting you in control

If your business has at least one Half Hourly (HH) meter and a total Estimated Annual Consumption (EAC) of more than 2GWh, you could be saving money with Flex Combi. This product fixes the rates of all of your TPCs for the duration of your contract – a minimum of 12 months – and takes away the risk of unexpected TPC increases. And there’s even more to it…

Fast and flexible power buying

Flex Combi lets you choose when to purchase your energy - and to do so immediately. This means you can track wholesale prices and buy whenever you think market conditions are in your favour.

Haven Power’s daily prices report can support your efforts to monitor what’s happening in the market – as can the adhoc notifications from our in-house trading desk.

To illustrate how Flex Combi could help you, here are two purchasing scenarios featuring customers that each have an EAC of 17.8 GWh and a start date of October 1st. The graph shows real market prices and the points where the customers buy their power.

Flex Combi chart

*The graph above shows weighted average energy prices for 2018/2019 and purchase points for the 2018 financial year.

Summary

When you compare the two sets of annual costs, Customer B was able to spend less over the year than Customer A, which locked in their power price to gain budget certainty. In contrast, Customer B took advantage of Haven Power’s Flex Combi plan to buy power at several points in the year.

They bought 50% in June and another 25% in September of the same calendar year, and the final 25% in February of the next year. Thanks to the Flex Combi plan, they also fixed their TPCs for the duration – giving them a foundation of cost certainty. They achieved an overall saving of almost £83k over 12 months.

Preparing to tackle the market

If you’re ready to take your first step towards proactive energy management, then get in touch about Flex Combi by using our contact form or by talking to your broker. Energy consultants should speak to their Haven Power Relationship Manager.

*Prices on the wholesale energy market can fluctuate.Customers are fully responsible for all purchasing decisions, and should be aware of the risks involved.

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