KGM Energy Brokers - eProcurement with Attitude

Market Intelligence Analysis Saves RSPCA 200K GBP

The Royal Society for the Prevention of Cruelty to Animals is the UK's largest animal welfare charity. It rescues, rehabilitates and rehomes hundreds of thousands of animals each year in England and Wales.

Objective

 

The RSPCA had benefited from falling UK wholesale electricity prices, but were concerned whether their electricity and gas bills should be fixed for the long or short term. So they turned to KGM Energy Brokers to help them procure around £350K worth of electricity with the aim of identifying the optimum time to go to market and ideal contract duration.

 

The Process

 

In the months leading up to the organisation’s electricity contract renewal, KGM Energy Brokers conducted a thorough study of leading market intelligence and wholesale power prices. As a result, we observed that while wholesale electricity prices had fallen consistently for several months due to the abolition of the 'electricity pool', wholesale power appeared to be 'oversold' with prices substantially below short, medium and long term moving averages. Technical analysis of wholesale power prices strongly indicated wholesale power prices were about to rebound.

 

Outcome and Benefits:

 

We recommended that the RSPCA sign an all-inclusive 5 year fixed price electricity contract, flying in the face of our competitors who were still suggesting short term contracts. Shortly after accepting our recommendation, wholesale electricity prices began to increase, spiking 3 years into the contract, and almost doubling by the end of the contract period.

 

As a result, we helped the RSPCA save about 200,000 GBP over the contract period. The terms of supply were maintained, despite supplier contracts increasingly passing risk to the consumer in the years following the agreement due to market volatility.

 

Contact us now to to save your company time and money and to help identify the optimum time to go to market


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