Advice ENERGY
SAVE YOUR ENERGY Ever wished you didn’t have to make yet another call to your energy supplier? Energy Renewals may have the solution your block needs
Anyone living in A block of flats is likely to be aware of the problems of energy supply to blocks of flats – and their managing agent or RMC directors will certainly be more intimately familiar with the headaches this can cause. Organisations representing those living and working in the leasehold sector, such as ARMA and the FPRA continue to work hard on improving the relationship between the utility companies and those managing energy supplies for blocks of flats but it is still easy to fall foul of your supplier if you take your eye off the ball. Energy procurement specialists Energy Renewals have made it their business to understand and familiarise themselves with the particular issues managing agents face when dealing with energy suppliers – over estimated bills, not being able to obtain information about a particular supply and incorrect rates of VAT, to name but a few. But one of the more frequent problems now arising is that of security deposits. Even if an RMC has been with a particular supplier for many years and has paid their bills on time, this is no protection from the increasing trend to request security deposits from management companies. The security deposit is the energy suppliers’ safeguard against what they perceive to be high risk customers in RMCs. Despite the supplies to communal areas in blocks of flats being used solely for domestic purposes, the RMCs are treated by the suppliers as commercial entities and as such are subject to the normal credit vetting procedures applied to all commercial customers. Due to their non-trading status, the RMC is likely to have a low or suppressed credit score or will show as a dormant company. This can create all sorts of problems when it comes to renewing contracts and may lead to supplies being on out of contract rates (which can be up to 5 times higher than contracted rates) while the issues are sorted out.
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RMC’s are likely to have a low or suppressed credit rating During the last few months Energy Renewals have been working closely with three of the major suppliers to change their perception of RMCs as high risk customers and to overcome the necessity to provide security deposits. This has been achieved to some degree and two of the suppliers are now offering a product to RMCs who meet certain criteria. (This would apply to around 90% of most managing agent’s portfolios.) As a result of these discussions, the two energy providers in question have agreed to offer green tariffs, preferential rates and quarterly/monthly billing for a trial period, to blocks who meet their criteria via Energy Renewals.
One of the more frequent problems now arising is that of security deposits Managing Agents can find themselves spending disproportionate amounts of time dealing with their energy portfolio simply because they do not have the resources or the necessary industry knowledge. Outsourcing can provide a workable alternative. It isn’t always just about price when it comes to renewing energy contracts, so choosing an energy management company that offers ongoing support to managing agents via a key contact can ensure good channels of communication and a solid working relationship. ● For more information about how Energy Renewals can support your portfolio energy management, please contact ken Warner, Senior Energy Consultant on 0844 909 9001 or email info@energyrenewals.co.uk Website www.energyrenewals.co.uk
energy Renewals can offer n Portfolio assessment (collating information from all suppliers including estimated consumption for each meter and contract end dates) n Alignment of contract end dates n Smooth transfer of supply (dealing with objections on transfer) n All accounts set up with correct VAT rate of 5% n Management of any issues on your behalf as they arise n Online access to portfolio via Energy Renewals customer portal n Spreadsheet billing n Bill validation via online portal (15% of invoices contain irregularities) n Group pricing and yearly comparisons on renewal of contract Suppliers can offer (through energy Renewals) n Green Tariffs for chosen sites n Preferential rates n Quarterly/Monthly billing n No security deposits for management companies For more information about our services please contact Energy Renewals Limited via email or go to our website (see contact details below). Energy Renewals operates under a strict code of conduct as we are a fully accredited member of the UIA (Utility intermediary association)
Issue 13, Winter
Flat Living
