It is imperative you can access lower electricity rates for a hospice. The cost of electricity and gas is clearly a large expenditure for hospices. You should shop around to ensure you get very competitive electricity rates for your hospice.
At Perfect Clarity we are able to provide your hospice with precisely this. Extremely competitive electricity rates from across the market of more than 20 energy companies.
Call our small team on 020 3372 6517 for more information.
Half Hourly electricity rates for a hospice
The main electricity meter at your Hospice is likely be a Half Hourly electricity meter. The costs and rates for these meters are a little more complicated than a standard meter. You may find these extra costs confusing or would perhaps appreciate some guidance.
Before agreeing an electricity contract for the hospice, you should be careful to check the details. The next section below highlights the important points to look out for.
A typical Half Hourly electricity contract will have different rates for Day and Night electricity use. Our average electricity rate for a Hospice in early 2020 is as follows:
Day rate 13.20p per kWh (7am to midnight)
Night rate 9.25p per kWh (midnight to 7am)
Standing charge 14.50p per day
These are average prices, based on a 1-year electricity contract. Electricity rates will differ from region to region, so your hospice could may more than this, or less. The difference is mainly due to distribution costs.
Call our small team on 020 3372 6517 for the latest electricity rates available for your Hospice.
While a 1-year contract will usually be the lowest cost to your Hospice, it may not be the best option. Hospices we work with tend to prefer 2-year contracts, and occasionally they will fix prices for 3 years. With electricity prices increasing, they prefer the security of a fixed rate over a longer term.
And you will have a couple of additional charges on your electricity bill. Please see below.
Authorised Capacity charge for a Hospice
If you have a Half Hourly meter, there will also be an Authorised Capacity charge on your Hospice electricity bill. Sometimes referred to as just ‘Capacity’ charge. This is a charge by your local Distribution Network Operator. It ensures they keep enough capacity available for your Hospice power consumption.
For the Capacity charge, we will check the kVA hasn’t been set too high. We do this by asking the Distribution Network Operator (DNO) for your region for the maximum demand (in kVA) over the past 12 months. We compare this to your current kVA level.
It is important to keep a buffer above the actual maximum kVA (20% is a good idea). This ensures you won’t be hit with Excess Capacity charges.
With your agreement, and if there is room to do so, we will apply to your DNO to lower the kVA. This will then be reflected on your next electricity invoice from your energy supplier, lowering your bill a little each month.
Meter Operator charge for a Hospice
The Hospice will also need a Meter Operator (MOP) and Data Collection (DC) contract. In fact, it is a legal requirement for sites with a Half Hourly meter to have a MOP contract in place. This can be with your electricity supplier (usually very expensive) or directly with a specialist Meter Operator.
We can arrange a direct contract with a specialist Meter Operator for your Hospice. The cost depends on the type of meter at your site. It will be between £137 and £250 per year. And includes both the Meter Operator charges and the Data Collection charges.
Compare this to the charges for exactly the same service if you allow your energy supplier to arrange it for you.
Typical MOP and DC charges from suppliers are £40-£60 per month for the MOP. And around £25 per month for the data collection. This works out at a minimum of £780 per year, going up to £1,020 per year with some suppliers.
They aren’t even providing these services themselves. They simply appoint their preferred meter operator, who bills the supplier. The supplier marks these rates up by an extraordinary amount on your Hospice electricity invoice.
Much better to go direct!
Is a pass-through electricity contract a good idea for a Hospice?
Unfortunately, there are some unscrupulous organisations who will take advantage of the extra layer of complexity of Half Hourly meters. They will mask the true cost of your hospice electricity contract. A pass-through contract is a good example of this.
You may be offered a ‘pass through’ electricity contract for your Hospice. On the face of it, it looks a great deal. You are getting electricity at the wholesale rate (6p or 7p per kWh perhaps).
We should point out here that the price per kWh of electricity (in a fully fixed contract) roughly consists of:
50% is the actual wholesale electricity price (if you could buy it directly from the generators).
50% is distribution and delivery costs, as well as government taxes.
They might gloss over, or not make entirely clear, that these distribution charges would usually be included in the unit price of electricity for a hospice.
But in a pass-through electricity contract, they are charged separately.
For a pass-through contract, your hospice electricity invoice will list all these extra costs below the cost of electricity. It is important to understand that these will not be fixed for the duration of your electricity contract. They will increase (or perhaps decrease) as these distribution costs and taxes increase.
And these charges are predicted to increase, close to 70% of the unit price by 2022.
A fully fixed contract will usually be the best option for your Hospice
Hospices are usually much better off asking for a fully fixed electricity contract. This will make budgeting easier as well.
In any event, these pass-through contracts are better suited to other sectors and industries. These sectors can be flexible in the hours they use electricity. This is beneficial as one of the pass-through distribution charges is the Distribution Use of System (DUoS) charge. This is a much higher cost of electricity used at peak times, typically between 4pm and 7pm, Monday to Friday. By reducing electricity used during these hours, a large consumer of electricity can reduce their electricity costs significantly.
However, as a hospice you are unlikely to be in a position to pick and choose which hours electricity is used.
If you are unsure whether a pass through electricity contract is a good idea for your Hospice, please call us on 020 3372 6517 for advice. Or perhaps you would just like a second opinion.
The independent energy broker
Perfect Clarity are a leading UK business energy broker. Businesses of all sizes use our services to source energy and water prices.
Unlike many other brokers, we are on hand throughout your business energy contracts should you need any support.
Call us for clarity on your business energy prices. Perfect Clarity.
Freephone: 0800 977 5462
Telephone: 020 3372 6517
Fax: 0872 115 5462
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London EC1V 2NX