Utility bills account for a significant percentage of the overheads for many businesses, as much as 20 per cent, so it is no surprise that their arrival can cause facilities managers, energy managers or financial directors to take a sharp intake of breath. Variations in consumption levels, whether seasonal or productivity related, as well as the volatility of the electricity market can make it very difficult for businesses to plan and budget. And this is not helped by issues with the accuracy and regularity of utility bills.

The biggest issue for the energy supply industry, and one that has the greatest impact on customers, is the quality and accuracy of energy consumption data. And this is particularly the case for the electricity industry where there is no single centralised database. In addition, because the industry is so fragmented with lots of players getting involved at different points of the chain, it is not surprising that customers can get confused over who has responsibility when it comes
to resolving any issues.

The buck has to stop somewhere and according to npower business, one of the UK’s leading energy suppliers, energy companies should be taking full responsibility for the service their customers receive. This means not only taking complete and absolute responsibility for its own products and services but also those provided by suppliers. In a decentralised industry where often several companies deal with different parts of the process of electricity transmission, distribution and supply, finding a supplier that can provide a fully integrated, end-to-end service is critical if facilities managers are to take greater control.

For example, some energy companies like npower business are getting involved at every stage, from working with data collection agents to improve the quality of meter readings to renegotiating some of its meter reading contracts. All of which should help to improve performance and drive up standards.

As well as gaining accreditation for meter operation, a small number of energy companies have been accredited to carry out Data Collection (DC) and Data Aggregation (DA) for some of
its customers. Data Collection involves gathering consumption data for each appointed meter (either remotely by telephone line or radio system or by site visit), checking and validating it for accuracy before forwarding it to the supplier distribution company and Data Aggregator to process. The aggregated data is then forwarded to Settlements in order to enable energy costs to be settled accurately by the energy supplier.

Gaining these accreditations means that energy companies like npower business can control the accuracy of the information at the start of the Data Management process all the way through to the bill landing on a customer’s doorstep. By managing this process in-house, rather than relying on third parties, energy companies have far greater control and, importantly, accountability over the end-to-end process of registering and billing customers.

But what if your company relies on a third party to carry out Data Collection and Data Aggregation? You should look for energy companies that have dedicated teams who not only validate the data (collected by themselves or third parties) prior to billing and highlights any anomalies, but who also manage the performance of all third parties involved in the process.

Even with all these processes in place, the most prudent facilities manager can still face unwelcome surprises when the utility bills arrive due to the current volatility within the electricity market.
It has therefore become increasingly difficult for energy providers to fix prices and, as a result, some customers may have experienced rises of as much as 20 per cent in their electricity costs. However it is possible for customers to benefit from this unstable situation. Services do exist whereby customers can fix their own prices at the lowest cost available, based on specific market information made available to them. This not only ensures security of supply, but also gives customers the flexibility of not having to lock into a long-term, fixed price.

One final area that facilities managers should not overlook is the importance of energy efficiency. By minimising energy waste companies can make financial savings both in terms of lower energy bills and reduced Climate Change Levy payments. Organisations that haven’t yet looked seriously at energy efficiency could typically save 20 per cent on their energy consumption, and resultant greenhouse gas emissions, by carrying out no-cost and relatively low-cost measures.

For example lighting is responsible for using 20 per cent of the electricity generated in the UK, which equates to 60,000 million kW. Business usage accounts for 71 per cent of the overall consumption, costing approximately £2,492 million per annum, so even simple things like maximising the use of daylight, improving lighting controls and switching off lights when rooms are not occupied can make a significant difference. By understanding a business’s energy consumption and working in partnership with the energy supplier, facilities managers can take more active control over the billing process and perhaps even give a contented sigh when their next bill arrives.

Further information
Please contact:
Emma Tyreman
npower major business accounts
Tel: 07989 493344
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www.npower.com