October 2024 Review

The Take or Pay Clause For many UK businesses, energy contracts can contain complex terms that aren’t always fully understood at the point of signing. One clause that often raises questions, is the take or pay clause . Understanding how this works is essential for avoiding unexpected costs and managing your energy procurement effectively. What is a take or pay clause? A take or pay clause is a contractual provision that requires a business to pay for a minimum level of energy consumption, regardless of whether that energy is actually used. In simple terms, you agree to “take” a certain volume of gas or electricity, or “pay” for it anyway. This clause is most commonly found in fixed energy contracts, particularly for larger commercial or industrial users, where suppliers price agreements based on forecasted consumption. How does it work in practice? When entering into a contract, your supplier will estimate your annual consumption based on historical usage data. This forms the basis of your agreed volume. The take or pay clause then sets a tolerance band -- often around 80–120% of expected usage. If your business consumes within this range, everything operates as expected. However, if your usage falls below the lower threshold, you may be charged for the shortfall. This means paying for energy you haven’t used. On the flip side, if you exceed the upper limit, additional units may be charged at a higher, non-contracted rate. Why do suppliers include take or pay clauses? Suppliers use take or pay clauses to manage risk. When they agree a fixed contract with your business, they typically purchase energy in advance based on your forecasted demand. If your usage drops significantly, they are left with surplus energy that must be resold -- often at a loss. The clause ensures that suppliers can recover these costs, which in turn allows them to offer more competitive pricing upfront. What are the risks for businesses? The main risk is overestimating your energy usage. If your operations change, you could fall below your contracted volume and face additional charges. There is also a financial planning risk. Businesses may believe they have secured a competitive rate, only to find that under-consumption penalties increase their effective cost per unit. How can you manage take or pay risk? The key to managing this clause is accurate forecasting and contract alignment. Reviewing historical consumption data, understanding operational changes, and factoring in growth or reduction plans are all critical steps before agreeing a contract. It’s also important to negotiate appropriate tolerance levels. Some suppliers offer more flexible bands, which can reduce the risk of penalties if your usage fluctuates. Regular monitoring throughout the contract is equally important. Identifying trends early allows you to take action. How an energy broker can help Take or pay clauses are a prime example of why energy procurement should go beyond simply comparing prices. At SeeMore Energy, we help businesses understand the full terms of their contracts -- not just the headline rates. We work with you to ensure your consumption forecasts are realistic, negotiate favourable contract terms, and match you with suppliers whose products align with your business profile. If you’re unsure whether your current contract includes a take or pay clause, or want to avoid unexpected costs in your next agreement, get in touch for a free, no-obligation review.

Gas and Electricity Procurement: A Guide to Flexible Energy Contracts With energy markets continuing to shift, many UK businesses are moving beyond traditional fixed contracts and exploring more dynamic procurement strategies. Flexible energy contracts -- often referred to as “flex procurement” -- offer a more strategic approach to buying gas and electricity, allowing businesses to engage with the market over time rather than locking in a single price. But how do flexible contracts work, and are they the right fit for your business? What is flexible energy procurement? Flexible energy procurement allows businesses to purchase their energy in multiple tranches, rather than fixing 100% of their volume at one point in time. Instead of committing to a single unit rate, your energy is bought in stages. This approach is typically used by larger energy users as there are minimum sizes that must be purchased, but it is becoming increasingly accessible to a wider range of organisations. There is also the option of multiple smaller users creating a basket so they can purchase together. How do flexible contracts work? Under a flexible contract, your total energy requirement is forecast in advance. You (or your broker) then purchase portions of that volume at different times throughout the contract period. This could be based on market opportunities, risk strategies, or predefined buying windows. Some contracts offer full flexibility, where buying decisions are actively managed, while others provide a more structured approach -- sometimes referred to as “flex-lite” -- which blends flexibility with elements of price certainty. At the end of the buying window, any unpurchased volume is typically “shaped” or bought automatically, ensuring your total demand is covered. The benefits of flexible contracts The key advantage of flex procurement is the ability to manage risk and a likelihood of achieving a lower average unit rate. By spreading purchases, businesses can avoid locking in all their energy at a market peak. Flexible contracts also provide greater control. You can respond to market trends, adjust your purchasing strategy, and take advantage of dips in wholesale prices. For organisations with the right strategy in place, this approach can deliver significant long-term savings compared to traditional fixed contracts. The potential drawbacks Flexibility comes with increased complexity. Monitoring the market, deciding when to buy, and managing risk requires time, expertise, and a clear strategy. There is also an element of exposure. If the market rises consistently, a flexible strategy could result in higher overall costs compared to fixing early. Many businesses lack the expertise required to make informed decisions in-house, and having a trusted energy partner can be essential for the flex purchase management . How an energy broker can help Flexible procurement is not a “set and forget” solution. It requires active management and market insight. This is where an experienced energy broker becomes invaluable. At SeeMore Energy, we support businesses through every stage of the flex procurement process. From selecting the right contract structure to developing and executing a tailored buying strategy, we ensure your energy purchasing is aligned with your commercial objectives. We monitor the market on your behalf, provide clear recommendations, regular reports, and help you make informed buying decisions -- the need for in-house expertise. If you’re considering a more strategic approach to energy procurement – or looking for assistance in managing an existing flex contract -- get in touch today for a free, no-obligation market review. We’ll help you determine whether flexible contracts are right for your business --and how to make them work effectively.

Gas and Electricity Procurement: A Guide to Fixed Energy Contracts For many British businesses, energy procurement is one of the most important, yet often overlooked, areas of cost control. With markets remaining volatile, fixed energy contracts continue to be one of the most popular strategies for managing gas and electricity costs. But what exactly is fixed procurement, and is it right for your business? What is fixed energy procurement? Fixed energy procurement refers to securing your gas and electricity supply at a set unit rate, and often standing charge, for a defined period -- typically between 1 and 4 years. This means your business pays the same price per kWh regardless of fluctuations in wholesale energy markets. For businesses seeking stability and predictability, fixed contracts provide a clear and structured approach to energy procurement. The benefits of fixed contracts The primary advantage of a fixed contract is price certainty. In an unpredictable market, locking in rates protects your business from sudden price spikes. This allows for more accurate budgeting and removes the risk of being exposed to short-term volatility. Fixed contracts are also simple to manage. With a set rate agreed upfront, there’s no need to track wholesale markets or make frequent purchasing decisions. This makes them particularly attractive for businesses without dedicated energy management resources. If you can time your renewal well, fixed contracts can also give a competitive advantage. If you lock a price in and the market goes up, this means many competitors will end up paying higher unit rates for their energy. However, this can involve some luck with timing and is somewhat restricted by contract end dates. The potential drawbacks While fixed contracts offer stability, they also come with trade-offs. The most notable is the inability to benefit from falling market prices. If wholesale costs drop after you’ve locked in, your business remains committed to the agreed rate. There may also be less flexibility. Fixed contracts typically involve longer commitments, and exiting early can result in significant termination fees. Finally, timing is critical. Locking in at the wrong point in the market cycle can mean missing out on more competitive rates later. This is why having a clear procurement strategy is essential. How the procurement process works The process of securing a fixed energy contract starts with gathering accurate consumption data . This includes your MPAN (electricity), MPRN (gas), annual usage, and current contract details. From there, suppliers are approached to provide quotes based on your business profile and preferred contract length. These quotes must be carefully compared on a like-for-like basis, taking into account unit rates, standing charges, and any additional costs. Once the most suitable option is identified, contracts are agreed and secured -- often within a limited timeframe, as supplier prices can change daily in line with the market. How an energy broker can help Navigating the energy procurement process alone can be time-consuming and complex. That’s where an experienced energy broker adds real value .  At SeeMore Energy, we manage the entire procurement process on your behalf. From data collection and market engagement to supplier comparison and contract placement. We work with a wide range of UK suppliers, allowing us to identify not just the cheapest option, but the most appropriate contract for your business . We also provide insight into market timing, helping you decide when to fix your rates, and which contract structure best aligns with your risk appetite. If you’re approaching renewal or want to explore your options, get in touch today for a free, no-obligation market review. We’ll help you secure the right fixed energy contract -- saving you time, reducing risk, and ensuring that you stay in control of your energy costs.

How do I make an energy price comparison? For UK businesses dealing with a volatile energy market, energy procurement has become increasingly important. With wholesale markets fluctuating and non-commodity costs continuing to rise, making an accurate energy price comparison is essential to securing a competitive contract. However, comparing prices properly involves far more than just looking at a unit rate. Understanding the procurement process The first step in any energy price comparison is going to market. This involves gathering offers from a broad selection of suppliers based on your business’s consumption profile and contract preferences. Suppliers will assess your usage, risk profile, and contract length before providing pricing. However, not all quotes are directly comparable. Some may include different contract structures (fixed vs flexible), varying standing charges, or additional pass-through costs. A like-for-like comparison is critical to avoid selecting a contract that appears cheaper on the surface but proves more expensive over time. What data do you need? To generate accurate quotes, suppliers (and brokers) require a clear picture of your energy usage. Typically, this includes: Your MPAN (for electricity) or MPRN (for gas) Estimated Annual Consumption (EAC) or Annual Quantity (AQ) Half-hourly data (for larger sites) Current contract details, including end date and rates Site address and business details The more accurate and complete your data, the more precise and competitive your quotes will be. Missing or estimated data can lead to pricing buffers being added by suppliers, increasing your costs unnecessarily. Why expertise matters While it’s possible to approach suppliers directly, many businesses choose to work with an energy broker . This is because procurement isn’t just about finding the lowest price, it’s about finding the right contract. An experienced broker understands the nuances of supplier offerings, including which suppliers are most reliable, how they handle billing and customer service, and which are best suited to specific business types or consumption patterns. They can also advise on contract structures, helping you align your energy strategy with your risk appetite and budget. At SeeMore Energy, we work closely with a wide panel of UK suppliers, allowing us to provide tailored recommendations -- not just the cheapest option, but the most suitable one. Using our online quote tool For businesses looking to get a quick view of the market, our online quote tool is a powerful starting point. By inputting a few key details about your business and energy usage, you can instantly access multiple supplier prices in one place. This allows you to benchmark your current rates against live market offers and identify potential savings opportunities within minutes. It’s a fast, transparent way to understand where you stand, without the need for lengthy back-and-forth with individual suppliers. Take the next step with a free market review While online comparisons are a great first step, the real value comes from expert analysis. Energy pricing is influenced by timing, contract structure, and supplier selection -- factors that require market insight to fully optimise. That’s where we come in. At SeeMore Energy, we offer a free, no-obligation market review to help you understand your options, identify savings, and secure the right contract for your business. Get in touch today and let us take the complexity out of your energy procurement, allowing you to focus on running your business while we handle the rest.

How Can My Business Lower Standing Charges? For many UK businesses, standing charges are an unavoidable part of energy bills. Unlike unit rates, which fluctuate based on usage, standing charges are fixed daily costs applied regardless of how much energy you consume. Leading many businesses to look into ways in which these standing charges can be reduced. In some scenarios they are unable to be reduced, but there are times in which they can be lowered. Reducing these costs, requires a more detailed understanding of how these charges are calculated and what factors influence them. What makes up a standing charge? Standing charges are often made up of several components, including: Network costs (Distribution Use of System and Transmission charges) Metering and data services Policy costs and levies Supplier administration fees While suppliers apply the standing charge, a large proportion of the cost is driven by network-related charges, meaning there are opportunities to reduce them — but not always in obvious ways. TCR Banding The Targeted Charging Review (TCR) has changed how certain network costs are recovered, particularly for non-half-hourly (NHH) customers. Under TCR, many charges are now fixed and linked to banding structures based on usage characteristics rather than actual consumption. Being placed in a higher band can significantly increase your standing charges. Various use of system charges are based on which TCR band a meter is in, and these charges can often make up part of the standing charge. While banding is determined by historical usage and meter type, there may be opportunities to review your position and ensure it accurately reflects your business profile. By contacting your DNO , you can see when the next TCR band review is scheduled -- in situations where usage is below the levels associated with your TCR band, you may be able to request a review before then. Validate your bills As with all elements of energy billing, errors can and do occur . Standing charges are no exception. Businesses should ensure that charges match agreed contract terms, correct rates and structures are applied, and no duplicate or incorrect costs are included. Without proper validation, these issues can go unnoticed. Particularly as standing charges are often seen as “fixed” and not questioned. Take a strategic approach Reducing standing charges is rarely about a single change. Instead, it involves a combination of: Technical reviews (capacity, metering, banding) Ongoing validation Strategic procurement and supplier selection For many businesses, these areas are complex and time-consuming to manage internally. Take control of your energy costs At SeeMore Energy, we help businesses go beyond headline rates and uncover hidden savings within their energy setup -- including standing charge optimisation. From kVA capacity reviews and TCR analysis to full bill validation , we ensure every element of your energy costs is working in your favour.  If you want to reduce unnecessary charges and ensure you’re not overpaying, get in touch today. Our expert team will identify opportunities and help you take full control of your energy spend.

Should I Use an Energy Broker/Partner? With energy markets becoming increasingly complex and volatile, many UK businesses are asking the same question: is it worth using an energy broker/ partner? While it’s possible to manage energy procurement and administration in-house, doing so effectively requires time, expertise, and constant market awareness. For many organisations, working with a specialist partner can unlock significant savings and remove a substantial administrative burden. Smarter Procurement and Market Timing One of the primary reasons businesses engage an energy broker is procurement . Securing a competitive contract is about far more than simply comparing prices at renewal. A competent energy broker will monitor wholesale markets daily, advise on the best time to contract, provide access to a wide range of suppliers and contract structures, and tailor strategies based on your budgetary needs. This dedicated market insight can help businesses avoid locking into contracts during market peaks and instead secure energy when conditions are more favourable. Invoice Validation: Are You Being Overcharged? Energy billing is notoriously complex, and errors are more common than many businesses realise. Without proper scrutiny, overcharges can go unnoticed for months or even years. A good energy partner will validate invoices against contract terms allowing them to identify incorrect charges or discrepancies. They will then contact your supplier to recover historical overpayments ensuring that you haven’t paid more than necessary and your team don’t have to use their time in dealing with suppliers. This ongoing oversight ensures you only ever pay what you should, not what you’re billed. Support with Suppliers, DNOs and Disputes Dealing with energy suppliers and network operators can be time-consuming and, at times, frustrating. Whether it’s billing disputes, contract queries, or technical issues, having expert support can make a significant difference. An experienced broker can act as a single point of contact for suppliers, liaise with Distribution Network Operators (DNOs) , and support escalations -- including cases taken to the Energy Ombudsman. This not only saves time, but by having a team familiar with supplier’s SLAs, it ensures that issues are handled efficiently and with the right level of expertise. Specialist Cost Reduction Knowledge Beyond procurement, there are a number of technical areas where businesses can reduce costs, many of which are often overlooked. These include: kVA capacity reviews to ensure you’re not overpaying for unused capacity TCR banding optimisation , which can significantly impact network charges Identifying opportunities to reduce consumption or shift usage patterns Without specialist knowledge, these areas are easy to miss, but -- with the right guidance -- they can deliver meaningful savings without any operational disruption. Is It the Right Choice for Your Business? For smaller businesses with limited time and resource, an energy broker can provide immediate value. For larger organisations with complex portfolios, the benefits are often even greater -- particularly when it comes to validation, optimisation, and strategic planning. By having experienced external support, a business can feel confident that their energy spend is being scrutinised and managed with the correct level of attention, without having to divert the focus of employees whose time could be better spent in other areas. Take Control of Your Energy Strategy At SeeMore Energy, we work as a true partner to our clients. By combining market expertise, technical insight, and ongoing support, we help businesses reduce costs and stay in control of their energy strategy. From procurement and invoice validation to kVA reviews and dispute management, we ensure every aspect of your energy is working as efficiently as possible. If you’re unsure whether you’re getting the best deal -- or simply want peace of mind -- get in touch today. Our expert team will help you identify savings, reduce risk, and take control of your energy costs.

How Can My Business Reduce Energy Costs? With energy prices remaining volatile and non-commodity costs continuing to rise , reducing energy spend has become a priority for businesses across the UK. While many focus solely on securing a competitive contract, the reality is that meaningful savings often come from a combination of procurement strategy, operational efficiency, and technical optimisation. Procurement: Timing and Strategy Matter Procurement is often the first option businesses look to when trying to reduce costs. Securing energy at the right time and with the right type of contract can significantly impact your overall spend. Rather than simply renewing at contract end, businesses should consider: Monitoring wholesale market trends Forward purchasing or flexible contracts Aligning contract length with risk appetite and market outlook A well-timed procurement strategy can protect against volatility and avoid locking into unfavourable rates during market peaks. Energy Audits: Reduce and Optimise Consumption Reducing consumption remains one of the most effective ways to lower energy costs. Conducting an energy audit helps identify where energy is being wasted and where efficiencies can be introduced. This can include: Identifying inefficient equipment or processes Highlighting opportunities to reduce usage during peak tariff periods Shifting consumption to off-peak times where rates may be lower Even small operational changes, such as adjusting run times or improving maintenance, can deliver meaningful savings over time. kVA Capacity and TCR Banding Reviews Many businesses are unknowingly overpaying due to incorrect technical settings on their supply. kVA Capacity Your agreed supply capacity determines how much power your site can draw from the grid. If this is set too high, you may be paying unnecessary capacity charges . If it’s too low, you risk excess capacity penalties. Regular reviews ensure your capacity accurately reflects your operational needs. TCR Banding (Targeted Charging Review) TCR banding determines how certain network charges are applied, particularly for electricity. Being placed in the wrong band, or failing to optimise your position, can significantly increase costs. Reviewing both kVA capacity and TCR banding can unlock savings without any change to consumption . Bill Validation: Are You Being Charged Correctly? Energy billing is complex, and errors are more common than many businesses realise . From incorrect meter readings to misapplied charges and outdated contract rates , even small discrepancies can add up over time. Implementing a robust bill validation process ensures that: You are billed in line with your contract All charges are accurate and correctly applied Any historical overcharges are identified and recovered Without ongoing validation, many businesses simply assume their bills are correct. This can lead to overpaying and spending more than necessary on electricity. Government Schemes and Support Depending on your business type and energy usage, you may be eligible for government schemes or exemptions designed to reduce costs. These can include: Climate Change Agreements (CCAs) Energy-intensive industry exemptions Various relief mechanisms on network and policy charges Eligibility criteria can be complex, and many businesses miss out simply because they are unaware of what they qualify for. Reviewing your eligibility regularly ensures you are not leaving money on the table. The Value of Expert Support Reducing energy costs is no longer just about finding the cheapest unit rate. It requires an approach that combines procurement, technical optimisation, and ongoing validation. For many businesses, navigating this landscape internally can be time-consuming and complex. That’s where working with a specialist energy broker can make a real difference. At SeeMore Energy, we support businesses in identifying cost-saving opportunities across every aspect of their energy strategy. From market timing and contract negotiation to bill validation and technical reviews. If you want to ensure your business isn’t overpaying, get in touch today. Our team can analyse your kVA capacities and TCR banding, advise on your current contracts, recommend optimal procurement strategies, and identify if you are eligible for any government schemes.

How often are business energy bills wrong? For many UK businesses, energy bills are simply accepted as a fixed cost of operations. However, industry experience suggests that billing errors are far more common than most organisations realise . Research published by OFGEM showed that 27% of small businesses found errors in their invoices, with this percentage rising to 48% for larger organisations. In some cases, they can lead to significant overpayments with businesses being unaware they are paying more than necessary. While it is difficult to assign an exact figure across the entire market, it is widely accepted within the energy industry that a meaningful proportion of business energy bills contain errors at some point during a contract. These issues can range from minor discrepancies to substantial inaccuracies that impact cash flow and budgeting. Why do energy billing errors occur? Business energy billing is inherently complex. Unlike domestic billing, commercial contracts often involve multiple components, including wholesale costs, network charges, levies, and capacity-based fees. This creates more opportunities for things to go wrong. Some of the most common causes of billing errors include: Estimated billing : Where actual meter reads are not available, suppliers may rely on estimates that do not reflect real usage. Wrong contract rates applied : Agreed prices may not always be correctly reflected in billing systems. Capacity and network charge errors : Incorrect kVA capacity levels or misapplied TCR banding can significantly increase costs. Change of tenancy or supplier issues : Errors often arise during transitions, where data is not transferred correctly between parties. Given the number of moving parts involved, even well-managed accounts can occasionally experience discrepancies. How big can the impact be? The financial impact of billing errors varies depending on the nature of the issue. In some cases, errors may only amount to small differences on individual invoices. However, when left unresolved over time -- particularly across multi-site portfolios -- these discrepancies can quickly add up. It is not uncommon for businesses to uncover thousands, or even tens of thousands of pounds in overcharges when historical bills are reviewed in detail. Larger energy users, or those with complex metering arrangements, are typically at greater risk. Are suppliers responsible for catching errors? Energy suppliers are responsible for issuing accurate bills, but the reality is that billing systems are not infallible. With large volumes of data and frequent industry changes, errors can and do occur. Importantly, many issues are only identified when the customer or their advisor actively reviews the data. Without this oversight, incorrect charges may continue for extended periods. What should businesses do? To minimise risk, businesses should take a proactive approach to energy bill validation . This includes regularly checking invoices against contract terms, ensuring meter readings are accurate, and reviewing capacity and network charges. For many organisations, however, this level of scrutiny can be time-consuming and technically challenging. As a result, more businesses are turning to specialist support to ensure their billing is correct. Take control with bill validation At SeeMore Energy, we understand how complex and costly billing errors can be. That’s why we’ve developed a dedicated Bill Validation system designed to identify inaccuracies, recover overcharges, and ensure your invoices are fully aligned with your contract and usage.  Get in touch today to learn more about receiving a free trial for our Bill Validation system , and make sure you’re only paying for the energy you actually use.

What is a DNO? For many UK businesses, energy bills are often viewed purely through the lens of suppliers and wholesale prices. However, a key part of the electricity system is the Distribution Network Operator (DNO) . Understanding the role of a DNO can help businesses better manage costs, improve efficiency, and avoid unnecessary charges. What does a DNO do? A DNO is responsible for owning, operating, and maintaining the local electricity distribution network . This is the infrastructure that delivers power from the national grid to homes and businesses. Unlike energy suppliers, DNOs do not sell electricity. Instead, they ensure that electricity is delivered safely and reliably to your site. If there is a power cut or a fault with the local network, it is the DNO -- not your supplier -- that resolves the issue. Why do DNOs exist? The UK electricity network is divided into regions, each managed by a licensed DNO. This structure exists to ensure the network is operated efficiently and maintained to a high standard, while avoiding duplication of infrastructure. DNOs are regulated by Ofgem, which sets the framework for how they operate and how much they can charge for using their networks. These charges ultimately form part of your electricity invoice through network costs . TCR banding and kVA capacity In recent years, DNO-related charges have become more visible to businesses due to the Targeted Charging Review (TCR) . This reform changed how certain network costs are recovered, moving away from usage-based charges to fixed charges based on a site’s capacity or agreed supply level. For many non-half-hourly (NHH) customers, this means being placed into TCR bands , which determine the level of fixed network charges applied. For half-hourly (HH) customers, charges are often linked more directly to their agreed kVA capacity . Your kVA capacity represents the maximum electrical load your site is allowed to draw from the network. If this is set too high, you may be overpaying in capacity charges. If it is too low, you risk exceeding your limit and incurring penalties or operational issues. Reviewing both TCR banding and kVA capacity is therefore an important step in ensuring your energy costs are optimised. DNO regions Each DNO operates within a defined geographic area. The main DNOs in Great Britain include: UK Power Networks (London, South East, East of England) National Grid Electricity Distribution (Midlands, South West, South Wales) Northern Powergrid (North East, Yorkshire) Electricity North West (North West England) SP Energy Networks (Central & Southern Scotland, Merseyside, North Wales) Scottish and Southern Electricity Networks (Northern Scotland, Central Southern England) Your DNO is determined by your location and cannot be changed, unlike your energy supplier. When should you contact your DNO? There are several situations where it may be necessary to engage with your DNO directly, including: Power outages or network faults New connections or site developments Increasing or reducing your site’s capacity (kVA) Metering or infrastructure changes impacting supply For most day-to-day queries, your energy supplier will act as your first point of contact, but more technical or infrastructure-related requests will involve the DNO. How we can help Understanding the role of the DNO -- and how charges like TCR banding and capacity impact your bills -- can unlock significant cost-saving opportunities. At SeeMore Energy, we help businesses review their energy setup in detail, identifying areas where network charges may be reduced and ensuring your contract and capacity are aligned with your actual usage.  Contact us today for a free energy review , and let us help you take control of your energy costs.