How are traditional energy contracts calculated?
As mentioned above, traditional style energy contracts include charges, commissions and uplifts that increase the cost of your business energy (and water). Although these charges are detailed in your contract paperwork and letter of authority (if you have used a TPI service) they are very much in the fine print which with modern digital signing practices can easily go un-noticed. A typical example would look as follows:
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Annual gas usage = 60,000kwh
The Buy price = 4.5p/kwh
Provider adds a 1.6p uplift to the buy rate
Sell price to the business is 6.1p/kwh
Total annual cost (excluding VAT, CCL & Standing charges) = £3,660
The commission uplift included in annual cost = £960
So for a typical 36 month contract, business pays £2,880 in uplift charges!
The same contract on a Solus Unlimited subscription would be £250/annum saving your business £710/annum or £2,130 on a 36 month agreement.
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Note: This is a typical example but it must be noted businesses are often charged uplifts of 2.5p and more per kwh! In cases such as this, the uplifted charges based on the above example would be more than £1,500 per annum.
How are traditional water & waste supply contracts calculate
Water and waste pricing is calculated in a similar way to energy. A buy price is offered and an uplift is added to the retail margin. See the example below:
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Buy price from Licensed Water Provider (LP) = £1,500 per annum
Provider adds uplift of £280
Business total annual cost = £1,780
Additional charges on a 36 month contract = £840
On Solus Water from the Cooperative you would pay a subscription equivalent to £50 per year saving the business £690 on the water agreement.
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Solus Water savings can be up to 50% and more but average 32% per annum
Solus Unlimited: Water
Solus Unlimited Water is a standalone product offering water & sewerage at supplier buy rates. The subscription is paid at the start of the water agreement term and locks in your water & waste supplies for the entire duration. This offers significant cost saving opportunites for businesses of all sizes. As well as savings up to 50% and more, our partnership with Scottish Water Business Stream also means no upfront payments, so no paying for water 6 weeks before you use it! Being partnered with the leaders in the Scottish Water supply region also means you have access to first class support at all times. Subscription price is per supply point ID (or SPID) with additional SPIDS charged at the additional site rate.