How do I know my energy renewal price is a good deal?
How to Check if your business energy renewal rate is a good deal
Benchmarking is a method of comparing your business against a set of standards; it could be another business or a set of standard variables.
There are some basic parameters to ensure that you are making the most of your benchmarking exercise.
- Deciding who to benchmark against
- Make sure you focus on your key business drivers and or costs.
- What are your strategic objectives? Can you learn lessons from competitors or partners when choosing benchmarks?
- Assess your allocation of resources against your chosen benchmarking partner.Make sure you are comparing against the appropriate industry norms.
- Make sure you are comparing against the appropriate industry norms.
- Don’t forget a benchmarking is just as applicable to nonmonetary measures such as service standards.
Energy Cost Benchmarking.
When it comes to energy cost benchmarking it is important to pick the right yardstick to assess your renewal price.
In a falling market, your renewal will typically be cheaper than your business has been paying historically. It is essential however to bear in mind that just because it is a lower price, it may not be the best you can obtain.
In a rising market, your renewal could be a lot higher than your previous rates and your thought process should be to minimise your increases.
A lot of unscrupulous brokers can take advantage of the unprepared SME that accept the first rate that beats their renewal price. You should always get a range of prices to benchmark your renewal before accepting a price.
troocost.com takes all the hassle and time out of this process by supplying you with an easy to understand listing of supplier prices to benchmark against your renewal. Each tariff is free from the commissions added by brokers, so you can be sure you are getting the bases prices to make a truly informed decision.
Plain, simple, honest, a fairer way to pay for your energy.
back to all blogs