How do business bosses rate their energy suppliers, as well as third party intermediaries/brokers, and how they rate their own purchasing teams? And how many of them are actually benchmarking energy purchasing effectiveness?
Findings of the 2015 Directors’ Energy Report may surprise some.
The report is based on the responses of 51 company directors surveyed in November. It suggests that most bosses believe that their energy purchasing team is performing. But around a third are not benchmarking the effectiveness of their procurement strategies, despite most directors expressing concern about price rises.
Directors believe anticipated energy price rises will be driven primarily by government policy and wholesale prices. While broker margins have come under scrutiny, directors rated this the second lowest factor in influencing the price they pay for their energy.
However, the majority (58%) of directors do not find energy suppliers’ charging structures to be clear, suggesting further progress between suppliers and regulator Ofgem is required. Confidence and trust are unlikely to increase if people are not clear what they are paying for.
Despite that, directors rated the performance of suppliers and third party intermediaries/brokers more favourably than not, with TPIs/brokers actually scoring higher average ratings for transparency and trust than gas suppliers.
Alongside key survey findings, the 28 page report also outlines the key questions boardrooms should be asking energy managers and their suppliers and brokers.
The full report is now available to download for free.
Related articles:
UK businesses pan electricity market reforms, prepare for 10% power price hikes in 2015
Another fine mess: Energy policy’s perverse outcomes mean ‘new Energy Act by 2017’
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