2 min read
Protecting UK Businesses against Volatile Energy Prices
True Powered by Open Energy Market : Feb 6, 2024 3:01:29 PM
For most businesses, managing energy costs and negotiating contracts is a serious hassle. But for organisations that are part of the Open Performance Fund, the days of overpaying and overcomplicating energy are over.
On average, businesses that are part of the fund saved 51.5% on electricity and 61.1% on gas during the summer of 2023.
Jonathan Neame is the CEO of Shepherd Neame, a brewery and pub chain with over 300 locations. Having signed his business up to the Open Performance Fund, his business has seen a 49% reduction in energy costs.
"We’ve been supported with excellent advice and support through some very turbulent times. The fund has saved us material sums as we have been able to fix utility supplies at below the market rate. This has given the business sufficient stability to be able to think beyond volatility in the market for the long term."
But what is the Open Performance Fund? And how does it work?
Ruari Cairns is the Head of Risk Management for True and said:
“First and foremost, it’s a service and product for businesses that want to reduce their energy costs. We’ve been operating the fund for over 6 years and it has proven to be a huge success for our customers and for our own team, who are responsible for developing and running the fund.”
“During the winter of 2022 – 2023, the cost of energy hit record highs and thousands of businesses in the UK were caught out. Many had to end their operations on a temporary and even permanent basis. Fortunately, we had locked in prices for our fund 12 months ahead of time, meaning all of the businesses that were included, paid well below market rates.”
For electricity, the fund achieved a 75.8% price reduction against the market average and a 78.5% reduction for gas for the winter 22 season.
For the summer 2023 season, electricity prices were 51.5% lower than the market average and 61.1% lower for gas.
Chris Maclean, CEO of True, said:
“It was one of the proudest moments I have had as CEO of the company. We were able to save our customers £250 million collectively. It meant that their staff could be retained and their operations could continue without the massive strain of extortionate energy costs. We created the Open Performance Fund for this exact reason, to offer businesses a safer and more reliable way to manage energy and their finances.”
The fund groups its member's energy consumption which allows them to benefit from wholesale gas and electricity prices. A team of energy trading specialists monitor and trade across a 12-month period with the goal of beating market average energy prices across each season.
Even in stable conditions globally, the fund has consistently delivered savings for its members, however, with major conflicts in Europe and the Middle East causing volatility in the energy market, the Open Performance Fund has come to play an even more critically important role in defending businesses against the impact of a rapidly shifting global landscape.
For a consultation with a member of the True Team and to find out how much money your business could save over the course of 12 months, get in touch with us, here.