Feb 2023 - Energy Market Report

With the Energy Market recovering we have a few good news stories so far in the first quarter of the year. With 2 clubs making huge savings against current terms, beating other offers that were on the table from alternative broker and suppliers.

Stuart from Prestbury Golf Club (saving £28,155 on their gas) said the below.

“Having used GMG over the past 5 years in a previous role they have once again been hugely supportive and thorough in their approach to finding Prestbury Golf Club the best gas price. This has resulted in a significant saving meaning the club is now in a position to plan financially knowing that this element of our utilities has been secured. I would recommend GMG to any Club Manager looking to make savings across the business in challenging economic times.” 

Jonathan from Saffron Walden Golf Club (saving £148,365.09) said the below.

‘We recently completed an energy price review with GMG Energy and other consultants and found the service and pricing from GMG efficient and professional. GMG managed to save us almost £150k on Gas and Electricity over the three-year deal from the out of contact rates, and a saving on what we had been quoted directly from our suppliers.’

 The relatively mild winter that the UK and the rest of Europe have encountered meant that Europe increased their gas reserves to 100% capacity and there was a surplus of LNG. This caused the market and prices drop considerably. This coupled with suppliers seeing more security in future markets has lead to more suppliers offering longer term fully fixed pricing. The general consensus is that the market is in a much better position, and future pricing will be in a similar position for the next few years.

There has been a lot of questions from clubs regarding the Government Energy Bill Relief Scheme, the current help comes to an end in April 2023, with the government announcing further support, all be it at a much lower level.

For contracts done in previous months they have offered some further help, setting aside £5.5bn for April 2023 to March 2024. This however is significantly lower than the previous £18bn that was set aside to support the UK over the winter months. The new support will see help of 1.961 p/kWh on electricity and 0.697 p/kWh on gas. This will only apply to contracts secured at a wholesale price of £302 per MWh and £107 per MWh respectively. Anyone out of contract will no longer receive any assistance. 

With the current drop in the wholesale market, it has cause a large gulf in cost between being in a contract and being on a variable rate. Any club who is on a variable tariff should be looking to secure a contract going forward, with savings of up to and over 50% available. 

The GMG Energy Club are here to help. There are hundreds of energy tariffs available and many suppliers to choose from. A lot of these don’t include future non-commodity increases, such as TCR costs. At the Energy Club, we pride ourselves on being transparent about all costs, and only offer Fully Fixed tariffs, so there will be no shocks with rates going up during the contract period. If a club requires green or renewable sourced energy we have a wide range of suppliers now offering options. 

If your energy contract comes to an end in the next 12 months, please get in touch for a no obligation and impartial consultation, where we will also discuss the journey to a net zero carbon solution for the club. We offer energy audits and renewable options to reduce energy consumption as much as possible. 

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