SOYANG Europe shocked to see additional costs
Energy PEAK were asked by SOYANG Europe to complete a business energy audit – both for business gas and electricity. The Energy PEAK team examined the documentation and found some anomalies.
SOYANG Europe were unaware of additional costs included in the contracts by the energy broker. The additional costs were substantial and in the current business environment, it is more important than ever that businesses have full view of their energy overheads.
How was this noticed?
The Energy PEAK team compared the contracted unit rates with the cheapest electricity and gas suppliers on that day. This was used as an initial gauge to assess business gas and electricity quotes. The information gathered was shared with the customer to review.
Two options are now available to the customer:
1. The customer signs a Letter of Authority (LOA) with Energy PEAK and we contact the supplier on behalf of the customer.*
2. The customer can contact the supplier directly themselves to query the contract terms.
In SOYNAG’s case, additional costs were added in both the business’ gas and electricity contracts, which the customer was unaware of. One important point to note here is the difference between a fully fixed or a pass-through contract.
What is a pass-through contract?
A pass-through contract has a higher degree of risk than a fully fixed contract. Why? Within the energy contract there are multiple third-party charges excluding the energy cost itself. For example, use of system charges or meter operation charges. These charges could go up or down within the term of your contract leaving your business exposed to additional charges. Whereas a fully fixed contract is consistent for the contract duration. This can be confusing. Remember, when comparing energy contracts make sure you are comparing like with like.
Signing a future contract
As a business owner, you may have heard that you can get the best gas and electric deals by signing a renewal contract for a future date. While this may be the case in some circumstances, it was not correct for SOYANG.
SOYANG Europe are in active discussions with their energy providers to assess next steps.
Huge thanks to the team at SOYANG Europe for their time and effort to put this case study together. We hope the energy advice and business energy solutions we discussed with SOYANG will result in a positive outcome and energy savings for their business. After all, this is what an energy broker should do.