Medium-sized businesses feeling neglected by energy industry, warns npower
24 Jan 2012 
npower Business
- New research highlights that medium-sized businesses don’t feel supported by energy industry
- Findings follow recent CBI report which encourages large firms to support medium-sized businesses
- In response, npower is launching two ‘industry-first’ propositions
Nearly half (44%) of UK medium-sized businesses (MSBs) do not believe current energy products meet their needs, yet energy is ranked as the second highest risk they face, according to new research from energy supplier, npower.
The research found that medium-sized businesses believe energy to be a greater risk to their business than cash flow, legislation and security, with only sales ranking higher. Over 90% of those surveyed want tools to help them take control of their energy buying, as time and resource is their number one barrier to more sophisticated purchasing. As a result, npower is launching two industry-first propositions for MSBs to help them take control of their energy procurement and better manage their budget.
Direct Budget Management (DBM) is a middle-ground between fixed and flexible energy contracts that enables MSBs to take greater control over their energy purchasing. npower will track the market on a customer’s behalf and buy their energy in line with an agreed strategy – ensuring complete budget certainty for a business.
PriceWatch has been designed for customers who currently purchase energy at a fixed price but want greater flexibility and control over energy purchasing decisions by renewing their supply contract at the best price point. This puts businesses in greater control of their budget, enabling them to make a purchasing decision based on cost, instead of renewing on a fixed date which could coincide with a peak in price.
Jon Davies, head of product management and strategy, npower, comments: “Our research shows there is a lack of products specifically for medium-sized businesses - so we are addressing this by being the first energy supplier to market with propositions directly targeted at this sector. A key driver of ours is empowering businesses to take better control of their own energy purchasing by retaining budget certainty whilst making more informed buying decisions. Both products do this by helping to move the emphasis away from time-led to price-led energy purchasing.”
npower’s research follows the CBI’s recent ‘Future Champions’ report which encourages larger companies to offer more support to medium-sized businesses. To build up the capabilities of those medium-sized businesses that have very low or declining growth rates, the CBI proposes that it and the Government encourage larger firms to support them in their supply chain, in order to share best practice and increase levels of leadership, innovation, exports, recruitment and financing.
Emma Wild, CBI head of Future Champions, said: “Medium-sized businesses are truly a forgotten army, and now is the time to unlock their potential. We should be championing, nurturing and encouraging our medium-sized firms so that more of them grow and create jobs. These companies could inject tens of billions of pounds into our economy.”
Jon Davies continues: “Our research and that of the CBI’s, reinforces that medium-sized businesses need the focus placing firmly on them in order to support their growth - so products must be tailored to their exact needs.”
For further information please visit www.npower.com/takecontrol or email business@npower.com.
Notes to Editors:
To find out more about what Jon and the team at npower think, follow them on Twitter @npowerbusiness.
Overview of Direct Budget Management:
Direct Budget Management is for customers who have an annual volume greater than 10GWh and best suits businesses that have typically used a fixed price contract but want help moving to flexible purchasing.
Throughout the DBM process, npower works closely with clients to formulate an appropriate energy-buying strategy and then executes it on their behalf. Reporting is regular and completely transparent within the customer’s set budget parameters.
Overview of PriceWatch:
PriceWatch will be available to business customers who use a fixed price contract with an annual consumption greater 200MWh.
With PriceWatch, npower works with a business to set their budget for the next contract period and this is then translated into upper and lower price triggers. A dedicated account manager then overlays these triggers onto the market and tracks it on a customer’s behalf. During the contract, if the set upper or lower trigger is hit, the business will be contacted with the option to renew early, so locking in at a price that is in line with their budget.
About npower:
- npower is one of the top energy suppliers to the UK business market, serving over 238,000 small to medium sized enterprise sites and around 17,000 industrial and commercial customers, with over 100,000 sites.
- npower Industrial and Commercial Markets is an award-winning business energy supplier. In 2010 it was named ‘The Consumer Supplier of the Year’ at The Energy Event and was also awarded ‘Energy Supplier of the Year’ at the inaugural Energy ‘Buying & Supplying Excellence’ Awards. Both awards were voted for by business customers. In 2011 npower also won the ‘Risk Product or Service of the Year’ at The Energy Awards.
- npower is dedicated to helping UK businesses use energy more efficiently and therefore spend less money on their bills. We aim to have a positive impact on the communities we serve and reduce our customers’ carbon footprint whilst always improving our service to our customers.
- npower specialises in risk management solutions, including market-leading flexible energy purchasing, energy efficiency, and broader energy management functions, tailored to every size of business.
- npower helps companies monitor and manage energy consumption to bring commercial and environmental benefits. To achieve this, npower has developed a monitoring and targeting (M&T) tool – encompass. A web-based system, encompass gives businesses accurate and timely information on their energy consumption, providing them with data they need to implement cost and CO2 reduction policies. The system automatically collects data from half-hourly and smart meters, providing a detailed report on a business’s energy consumption behaviour, and the related cost and environmental impacts of this. With this data, benchmarks can be set and consumption tracked, alongside mapping of carbon use and cost.
- For major energy users, npower offers multi-utility management consultancy to help organisations to improve efficiencies right across the procurement/consumption chain.
- npower customers include BT, Wembley Stadium plc, AstraZeneca and Sainsbury’s.
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