• Inenco has 25TW (£2.4bn) energy under management, which could power the whole of Ireland for an entire year!
  • We have one quarter of the total energy use by UK Industry under management
  • Our customers are paying 48% less than the market price for their gas commodity. That's a saving of £480k per £1m that would have been spent
  • Our experts process over 93,000 invoices per month and we've recovered over £11m in over-charges for our clients in the last year
  • Inenco look after 8,000 customers across the group, managing 140,000+ meter sites
  • We provide support to over 500 businesses for energy and carbon management
  • Inenco supported over 320 organisations with ESOS Phase 1 compliance and carried out more energy surveys than any other independent consultant in the UK
  • Our solutions team have identified savings of £37.5m per annum for our clients, a total of 495,338,992 kWh savings identified
  • Last year we saved our CCA clients alone £25.5m

What can we learn from GB Energy Supply?

16th January 2017

As the energy industry wakes up to the news of the collapse of small energy supplier GB Energy Supply, a watchful eye will no doubt be focused on other new-challenger suppliers, whose business models are being tested by increasingly volatile market and economic conditions.

The three year-old gas and power supplier cited, “swift and significant increases in energy prices” for its demise. GB Energy Supply will have come under pressure from the changing energy market prices, which is when a business’ ability to adopt a hedge forwards strategy becomes crucial.

So what can I&C businesses take-away from this?

So what can I&C businesses take-away from this?

  1. Check – is your risk strategy up to date?

Over the past year, the industry has (rightly) been focusing on increasing non-commodity charges; exploring ways to mitigate the growing risk and where possible turn it into value-generating opportunities via demand response schemes. However, it’s critical we do not neglect the commodity element of the bill. Commodity costs still make up more than 45% of the bill and with the smallest market movement can impact your exposed cost exponentially.

The message to businesses is clear: ensure that your risk management strategy is up to date and that you are hedged in accordance with it.

  1. Review your price tolerances

To keep abreast of market movement, it’s possible to set an upper and lower tolerance, often called ‘warning orders’, so that you are alerted when a price decision may need to be made. Changing economic conditions (such as the falling Pound after Brexit, or increasing market prices) may mean that your tolerances need reviewing to reflect your latest budget.

  1. Stay abreast of the market

As with every aspect of business, knowledge is power. There is a plethora of market information out there and it’s important to make use of it. Be sure to stay on top of market changes so that you can understand the forces at play and give yourself a better chance of foreseeing issues and reacting to changes quickly, from a properly informed position

Here at Inenco we provide short, jargon-free market updates along with updates via our twitter feed @inenco

Volatile market conditions create challenges across the industry, for suppliers and businesses alike, but it’s more pertinent that ever to take control of those risks which can be managed.