What happened to the first half of 2022?
Or maybe ‘a few months in the life of an energy consultant’ – it has certainly been busy, so much so that the last blog on my website was in late October 2021! So What’s been keeping me busy?
Energy contracts
I’m not a mass market broker but still have contract renewals for my ‘full service’ clients. We’ve had times when suppliers simply wouldn’t offer a price and with costs going up so much getting even normal credit terms has been challenging at times. My tip – start your contract renewal process at least 3 months before your current contract ends.
Invoice validation
It would be nice to think this wasn’t necessary but it is. It’s strangely satisfying (with frustration along the way) finding an error on a client’s invoice and winning the sometimes-protracted debate with their energy supplier. There have been some quite big changes to standing charges this year which has caused extra questions.
Capturing reliable energy use and cost data is also ‘gold dust’ when carrying out feasibility studies for things like CHP or Solar Panels.
Energy prices
The energy markets have of course been just crazy – when to buy, when to sell, fix or float?
The answer to these questions is ‘it depends’ (classic consultant response I know!) and on things that are often unique to a business. This one of the reasons why I always strive to understand how my clients ‘tick’. I have always believed that understanding your clients and their business is key to providing good advice.
Combined Heat & Power
Lots happening in this area. Optimising run hours in the face of volatile energy prices is certainly ‘lively’ but I like a challenge and there are always opportunities to make savings in such markets. Also helping clients to specify and buy new CHP; whilst gas prices have increased so has electricity and the business case for CHP has actually improved.
Energy compliance
Compliance rarely generates any excitement, but it is a necessary and at times worthwhile ‘evil’:
CHPQA annual returns to ensure continued savings on CCL and CPS
UK ETS annual compliance – an expensive necessary evil if you are ‘in’
Although there is sometimes a way out
CCL returns – quarterly and annual reconciliations
Take these seriously, they are akin to your VAT return. HMRC can and do investigate
Medium Combustion Plant Directive – I haven’t done much in this area to be fair
Some new rules kick in from 01/01/24 which might seem like plenty of time yet but you have to be compliant by then and the EA are incredibly slow processing applications
Renewable energy
OK, so there are currently no subsidies like the Feed in Tariff or Renewable Heat Incentive for new projects but high energy prices with a bit of Net Zero on top are making forward looking businesses look seriously at their options. Solar Panels for on-site electricity use only are gaining a lot of interest. Also, relocating biomass boilers with RHI accreditation that are no longer required where they started life to sites looking to reduce reliance on gas and oil for heating.
This isn’t everything I’ve been doing but a big part of it. There are a few more ‘unique’ things I am working on but some are covered by NDAs so I better stop here.
