Frequently Asked Questions

Why choose PEP?


Professional Energy Purchasing have TPI (Third party intermediaries) agreements with suppliers in order to achieve better rates for our customers. We look to secure energy at the best time of the year by thoroughly studying the market year on year. PEP also provide other services including energy efficiency management, site works, data analysis, reporting & metering. We deal directly with account queries, working with suppliers to resolve issues and ensure our customers are satisfied.




What types of energy contracts are there?


Fixed-term This type of contract is popular as it allows businesses to control and budget their energy bills. A fixed term contract is the best way to protect your business from energy price rises. Flexible-rate Flexible products give you control over buying your electricity and are designed for customers who want to track the market and optimise the way they buy electricity on a day-to-day basis or in trenches. Please get in touch with us if you wish to discuss these and we can advise if your consumption qualifies. Energy Only Sometimes also referred to as a Pass Through contract for electricity, this is when the commodity cost is fixed for the duration of your contract but the non-commodity costs are still to be added at time of invoice and these can fluctuate. Non-commodity costs are not included in energy only quotes and they make up 60% of your overall unit rate. Mid-term Review This is a fixed contract that allows customers to go back to market if prices fall significantly. For example: If you sign a 12-month contract, at any one time during the 1st 5 months you can request a review. Your revised rate will start from the 7th month and will be extended for either 6 or 12 months, you decide. With a 24 month contract you can review any one time during the 1st 11 months and the new rates would start from the 13th month and will be extended for 6 or 12 months.




What are the benefits of green energy?


Green and low carbon energy is widely available from multiple suppliers in the industry. This means businesses can secure their energy from green generating assets to contribute investment towards the UK’s carbon commitment. There are many green products on the market, each with its own benefits towards CSR.




What additional charges can you find on a typical utilities bill?


Non-commodity costs can make up 60% of an average utilities bill, some charges may include: TUoS (Transmission network use of system), DUoS (Distribution use of system), BUoS (Balancing services use of system), CM (Capacity market), CfD (Contracts for difference), RO (Renewable obligation) and FIT (Feed-in tariff).




What is a letter of authority?


A Letter of Authority (LOA) is a document that confirms the Authorised Signatory of a given business that allows a TPI to work on their behalf. PEP require that the LOA is filled, signed and printed on letterheaded paper which is then scanned and forwarded to PEP.




How can I manage energy costs and reduce consumption?


Professional Energy Purchasing provide a range of services to help you efficiently manage your energy consumption including managed reporting. This generates various reports which businesses can use to keep them in control of their energy.




What factors effect electricity and gas prices?


Electricity and gas prices are affected by many factors including global political events, weather, economic climates, supply issues and movements in the oil industry. Professional Energy Purchasing publish twice monthly reports relating to activities within the energy industry.




What is water deregulation?


In April 2017, the water market was deregulated. This means that consumers can now change their water supplier in order to receive better rates. This was put in place by the Government to support the water sector and provide an improved product for consumers.




What is P272?


The P272 change was initiated by OFGEM to solve the issue of the majority of meters being billed on an estimated usage. This results in network operators and suppliers not knowing what the exact demands are on the network and the exact costs of the supply. The P272 change is mandatory for all industries and defines that all non-half hourly (NHH) metered supplies with profile codes 05-08 (first two digits of your top line MPAN) must be settled as half hourly supplies (Profile Code 00) before 1st April 2017.




What is smart metering or AMR and what are the benefits?


Smart meters replace your existing meters and they have been improved to gather more accurate energy bills. This works through sending automatic meter readings to your supplier via mobile phone networks. All businesses by 2024 will have smart meters installed by their supplier.




What are MPAN and MPR numbers?


MPAN and MPRN numbers are unique reference numbers for your electricity and gas supplies. MPAN stands for Metering Point Administration Number and relates to electricity. An MPAN number is also known as a Supply Number or S Number. MPRN stands for Meter Point Reference Number and this relates to your gas supply.




What is a DNO?


Distribution Network Operators are companies that are licensed to issue electricity in Great Britain by the Office of Gas and Electricity Markets. There are 14 licensed DNOs in Britain and each is responsible for distributing electricity across regional service areas.




What is CCL?


The Climate Change Levy (CCL) is a tax on energy delivered to commercial users in the UK. CCL aims to provide an incentive to businesses to increase energy efficiency and to reduce carbon emissions. If you are a large energy user or if you perform a mineralogical or metallurgical process you may be eligible for some CCL tax relief. Please get in touch to find out if your business qualifies.




What is EAC?


EAC stands for Estimated Annual Consumption and it is the estimated amount of electricity (KWh) your business uses over 1 year. This is important to energy suppliers as they will use the figures to estimate the businesses future consumption and gather accurate prices.




What is AQ?


AQ stands for Annual Quantity and it is the amount of gas your business uses over 1 year. This is important to energy suppliers for them to estimate the businesses future consumption and gather accurate prices. Gas consumptions are now regularly updated via the National Database thus making AQ’s much more accurate than previously.




What are Pass Through Charges?


A ‘pass through’ charge is set by a third party (e.g. the Government), which suppliers pass on to the consumer. These charges are sometimes included in the unit rate, but are often added to the end of energy bill. It is important that you understand what additional charges you will be paying before agreeing to any new energy contract.




What are Deemed Rates?


When you move into a new property you ‘inherit’ the supplier of the utilities. You are automatically put onto deemed rates until you agree a contract with the current supplier or decide to switch to another supplier. Deemed rates are usually very high so you don’t want to be on them for too long!




What are out of Contract Rates?


If your current contract ends and you have not agreed a new contract with your current supplier or with a new supplier, you will be charged out of contract rates by your current supplier until you agree a new contract. Out of contract rates are very high. In most circumstances, if we are your energy consultant, we will have submitted a notice of termination at least 30 days prior to the end of your contract so that you are free to switch to another supplier if you wish or agree a renewal contract with the current supplier. This will make sure you do not end up on these high out of contract rates.




Who do I contact if I have a Gas Emergency?


Call the National Grid Gas Emergency hotline on 0800 111 999. They work 24/7. If you smell gas, are worried you have a gas leak or worried about carbon monoxide leaking from appliances you should call this number without hesitation.




Who do I contact if I have an Electrical Emergency?


Call 105 free of charge. This will take you through to your local network operator. You should call this number if you have a power cut or see a damaged overhead electricity line or substation. To find out who your local network operator is you can visit: https://www.powercut105.com/findoperator and type in your postcode.




What is Reactive Power?


Some electrical equipment can require power simply to make it work. This is not 'useful' in that it does not affect the output of the equipment for which power is also required. Reactive Power is a measure of this 'power', from which no energy can be extracted. In many electrical circuits, Reactive Power is necessary for the creation of an electro-magnetic field necessary in motors and transformers. This impedes the electrical current, causing Reactive Power to be required. An analogy of Power Factor is to imagine a horse pulling a carriage along a track. The horse can only apply force along the tow-rope as he cannot stand directly in front of the carriage. The Power Factor is the ratio between the useful power, in the direction of the arrow, and the power applied along the rope.




What is Flexible Procurement?


Purchasing energy flexible allows a business to protect its utilities budget while optimizing prices should market conditions present themselves. More energy consumers are utilising flexible products to mitigate the volatility in the energy market. PEP Ltd are experts in negotiating flexible products ensuring energy consumers can take full advantage of a risk managed solution.




What is Fixed Procurement?


Fixed price procurement can offer businesses absolute price certainty and only requires the energy consumer to make one purchasing decision. As this is a single transaction, it’s vital that businesses receive valuable advice on when to purchases their energy requirement. PEP Ltd, advise energy consumers when market conditions look favourable and negotiate with supplier to ensure there are no unnecessary risk premiums included in the contract.




What is Risk Management?


Professional Energy Purchasing offer bespoke risk management strategies suited to a business’s risk appetite. Our risk managers develop strategies to help you buy, sell back and spread the risk of buying your total energy requirement with full transparency of the wholesale market.





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