Energy Report - Autumn '22

As many clubs will be aware, the government has made an announcement agreeing to cap wholesale prices at 21.1 p/kWh and 7.5 p/kWh for Electricity and Gas, respectively. However, this doesn’t mean this is the total price customers will be paying in the next 6 months. The wholesale price is one element that makes up your unit cost, there is also non-commodity elements made up of government and industry taxes and levies. We are estimating that people who are in a fixed price contract will be paying in the region of 35-40 p/kwh. This will only apply to contracts accepted since 1st April 2022.

It is really important that clubs don’t sit on out of contract rates. We have had a few conversations with clubs this week, whom assume that staying out of contract is the best option as their rate will be reduced to the same being in a contract. However, the government will only help up to a maximum of 40 p/kWh on electricity and 11.5 p/kWh on gas. Therefore, if you are out of contract, paying up to 140 p/kWh, you will still be paying around 100 p/kwh instead of the “in contract” prices of around 40 p/kWh.

The government will be releasing the wholesale price for the week you agreed your contract and therefore letting the supplier know what discount to apply to your rate. This will not be set by the supplier and not be contract specific. Until the government release the figures, we are unable to let existing contracts know what discount they will get.
The government has agreed to support businesses for 6 months, with the wholesale price being assessed in 3 months. From April 2023 the government haven’t committed to what level of support will be offered. There are talks on vulnerable businesses receiving more help, but how this will be tested is still unknown.

GMG are here to help golf clubs negotiate through this confusing and troubling time. Many brokers are offering prices with suppliers that aren’t completely “Fixed”, with hidden terms that costs can and will increase at the drop of a hat. This makes budgeting very difficult for clubs and can cause crippling increases. GMG pride themselves on being transparent and honest.
With the huge rises in energy prices, a lot of clubs are looking into ways to reduce consumption and maximise earnings from their electricity. We have had many enquiries about Solar and EV charging, which we have multiple solutions available for.

If your contract ends in the next 12 months and/or you are interested in Solar/EV charging, please contact the GMG Energy Club at [email protected] with a copy of a recent bill and we will be happy to advise on the best procurement option or simply call us for a chat 0161 485 5410 opt 2.

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