Half Hourly 00 Tariffs

Half Hourly Meters or "00" electricity meters are used on sites that have a maximum demand above 100kW.  Half hourly meters can be found in a range of commercials sites, ranging from large offices, factories or supermarkets to the largest users such as Heathrow Airport or a steel works. With a OO or half hourly meter, actual consumption is recorded every half hour, and this is used by the energy supplier for your energy billing.

There are six options to consider when buying energy. The two are short term, two tie you into going to market at a fixed point and two involve purchasing over an extended period.

Option 1 – Do Nothing

Try this and your sites may revert to deemed rates, set by the supplier, expect to pay around double the contracted rate, but at least you can change supplier or arrange a new deal. Alternatively the supplier may "roll over" your contract - for a duration they choose, normally 12 or 24 months, at a price they choose, about 30-40% higher than the best deals available. You will be tied into this contract for the full duration. I don't recommend this option, but it is surprisingly popular.

Option 2 – extend current contracts

This may be a good choice, but only after you've been to the market, analyzed the offers, counter offers and the secured the best deal possible.

Option 3 – traditional fixed price - need to plan at least 6 months ahead.

This is where a tender is issued to a number of suppliers and the purchase is made on a specific date each year in advance of the contract period with no reference to market conditions. Some clients always renew in August or September, because it fits in with year end or just out of habit. This process is easy to manage, gives the benefit of fixed prices during the contract term, which allows for easier budgetary planning, but will rarely secure the best price, as you are not looking at the whole market, but just one day/week.

Option 4 – market related fixed price - need to plan at least 6 months ahead, preferably more.

This is the same as option 3, but also taking into account market conditions. Energy markets are very volatile, but there are still trends that can be seen and used to your advantage. For example, most 00 sites are renewed on the 1st of October - and many customers wait until the last minute to renew (They are following option 3). but given the rules of supply and demand, with a huge increase in demand in September, prices typically rise in September. So all those people who wait for the last minute to renew, are costing themselves more money most years. Prices for October start contracts can vary by 15-20%+ through the year, so the costs here are significant.

Option 5 – flexible purchasing fixed price

Is where energy is purchased in parts, typically over 6 months, before the start of the contract. This method gives the benefit of a fixed price during the actual contract period, but helps to manage the risk of buying too high, but spreading out the actual purchase, for example buying 1/6 of the total energy requirement every month for 6 months before the start. This way, you are paying the average of the energy price over the period, rather than the price on a day. In a falling market, you will be better off, in a rising market worse off. You will not always be better off using this option, but you are unlikely to be much worse off either.

Option 6 – flexible purchasing variable price

This is where energy is purchased before and during the contract period. Buying energy this way, spreads the risk even further, if prices fall during the term of a contract and you are on a fixed price as in any of the other option, you will be left high and dry and you see others reaping the benefit of lower prices. But you should remember the reverse is also true, if you fix a good price at the good time, and markets rise, you will see others paying significantly higher rates than you and wishing they were on a fixed contract. Flexible purchasing is not always the best option and it depends a lot on you and your organizations risk analysis, for many companies who don't want to spend a significant part of their time watching the energy markets and want to be able to accurately budget ahead, flexible contracts are not the answer. However if you are not risk averse and your business model can handle flexible pricing, then we can work with you to ensure you achieve the best outcome possible.

We can help you with any of these options, our business is comparing energy deals for you, saving you money and time, talking to an energy expert about cutting your business's electricity bills today.

Call us today on 0131 610 1688 and see what we can do for you.