12 May 2022
It has been well reported that over the last year, energy prices have climbed considerably. In 2021 heatwaves across North America and Asia coupled with hurricanes closing down facilities drove some of the increase which has then been worsened this year with a rise in global demand as counties exit lockdowns and supply from Russia becomes restricted.
As a property manager, we’re often responsible for purchasing the best energy possible for the communal areas of developments. This energy is used for example to light developments hallways, move the lifts and power the intercom and security systems. As this energy is communal, it’s unfortunately not covered by the domestic price cap set by Ofgem.
As the UK’s largest property manager, we pool together the developments to which we buy energy for in order to secure the very best deal possible. We work closely with an independent energy consultancy company who speak with all the major energy providers and who model a range of options to help ensure we secure cost effective deals.
As part of our last rigorous tender process, we were able to lock in fixed pricing for electricity with EDF and gas with Ecotricity to commence from October 2021. Locking in fixed prices is common when purchasing commercial energy, and the price lock has meant that developments electricity costs for the communal have been protected from an average 66% price increase already seen since October.
As well as protecting leaseholders against further energy price increases over the year for their communal areas, we’ve also been able to source 100% green energy at no extra cost. Our electricity is sourced from wind, solar and hydro, backed by Renewable Energy Guarantees of Origin scheme and our gas supply is carbon offset meaning any gas emissions are balanced by a range of CO2 capture methods.
2022 is shaping up to be an even more challenging year for the energy market and our teams along with our consultancy partner are working hard to help make sure that again, we’re locking in the very best energy deal to commence from October 2022.