“‘Perfect Clarity’ does what it says on the tin. Excellent customer support and contract finalisation with utility companies resulting in significant annual cost savings. What every small business and community organisation needs for continued utility cost performance.”
Village Hall treasurer, Staffordshire – Client since 2018
The commercial energy market
Village hall energy prices are commercial energy rates, not domestic rates. Churches, charities, and other smaller organisations also pay commercial energy prices. The commercial energy market is significantly different to the domestic market that you will be used to at home.
At home you are no doubt aware of the ‘Big 6’ suppliers (British Gas, EDF, etc) and perhaps a few smaller providers. However, the majority of energy suppliers in the UK can only be found in the commercial market, and aren’t involved in the domestic scene.
Prices change more frequently, although in smaller increments. Several energy companies update their energy prices every few days, or weekly. Some will do so monthly, and other suppliers will update prices half a dozen times a year.
The best village hall energy prices will be in a fixed term contract. These fix both the standing charge and price per kWh of energy for the duration of your contract. Your annual costs will depend how much gas or electricity you use.
Be careful how long you commit for. Commercial energy contracts are legally binding, so you won’t be able to change supplier halfway through a contract. Unless you move premises or change business name (which is unlikely for a village hall). Make sure you are comfortable with the contract before signing.
If you are not in a contract for your energy, your supplier can charge deemed rates. These charges are substantially higher than contracted rates. There is no situation where this will be beneficial for the village hall.
Village hall electricity prices
A typical village hall in the UK uses anything between 5,000 and 25,000 kWh of electricity per year. There are different electricity meters, so it is difficult to give a typical price for one meter. You could have a single rate meter, or day/night meter. There are also three-rate meters for halls that are mainly used in evenings and weekends. Additionally, the price charged by energy suppliers for electricity, does vary from region to region.
There are 14 different electricity regions in the UK. Your energy supplier can operate anywhere within England, Scotland and Wales. However, the 14 distribution companies have set areas. Distribution or network costs are a considerable chunk of the price you pay per kWh for your electricity. Our article in Energy Advice shows what the price per kWh of electricity consists of.
At the time of writing (January 2018), village hall electricity prices – along with all commercial electricity prices – have been steadily increasing since May 2016. This has been driven by several factors. The majority of organisations, including village halls, have acknowledged the benefit of fixing their electricity prices for 2 or 3 years for price security. Obviously you have to be comfortable with fixing your village hall electricity prices for this long. If you aren’t, then please choose a one-year contract.
Green electricity prices – another option
At Perfect Clarity we also have access to a range of green electricity tariffs for your village hall. These are often lower than standard electricity prices from some energy companies. And you will be investing in 100% renewable electricity.
Along with reducing the hall electricity consumption, a green electricity tariff will reduce your carbon footprint considerably.
Green electricity prices have fallen in recent years. It is certainly not as expensive to be a green organisation these days. And your energy bills will be contributing to new sources of green energy. Could this be an option to consider for your village hall energy prices?
Village hall gas prices
The final aspect of your village hall energy prices to consider is the gas contract. If your hall uses gas central heating, then the heating bill is going to be one of your largest costs.
The standing charge can constitute a large (or not so large) part of your gas tariff. In fact the standing charge can vary from zero (all the cost is in the unit price), up to around £900 per year. And anywhere in between. As a rule, village halls with a smaller gas consumption, will save money on a gas contract with no standing charge. This means the price per kWh will be higher than a contract with a standing charge, but is more cost effective. On a small annual use, the standing charge can be large proportion of the overall bill.
Gas prices are climbing still. However, going back 3 years, gas prices fell extremely sharply. This coincided with the dramatic fall in oil prices, as the two commodities loosely follow each other. Since then, gas prices have been slowly but surely increasing. But they are not yet near the levels before the fall, so still represent relatively good value in comparison. For this reason, we generally recommend considering a longer term contract to take advantage of the current prices. Of course, this depends on the specific needs of your village hall.
Managing your village hall energy prices
Not only do we check the energy market for prices, we also manage all aspects of your energy for you:
- Obtain the most competitive energy rates.
- Contact you during the renewal window, so you never slip onto higher, deemed or variable rates.
- Ensure termination notices are logged correctly, if we change your supplier.
- Request meter readings several months before your contract ends (this ensures your account is up to date, and avoids any problems when you change supplier due to outstanding bills)
- Request meter readings when the new contract starts, to ensure both suppliers work off the same open and close reading.
- Check your last invoice from previous supplier to ensure they have billed to the correct readings, and any credit on the account has been refunded.
- Check your first invoice to ensure the new supplier has applied the correct billing and VAT.
- On hand throughout your contract to answer any questions, resolve any billing issues, or request meter exchanges.
Call us for clarity on your village hall energy prices.
Now check your bills for overcharges, or see how you could reduce energy use at your hall.