G-Basket Annual Review – October 2022 – September 2023
Basket and flexible purchasing in the majority of the cases, is a new concept to a lot of business. By its nature, they are harder to manage with elements such as flexible purchasing decisions, monthly costing reports, market reporting requirements, plus ongoing assistance regarding budgeting; businesses can find it a significant challenge. However, our expert team manage this professionally and skilfully; which is evident in the following Annual Report (September 2022 – October 2023)
I’m sure you will agree that the cost benefits have massively outweighed the small additional management needed for these types of product and we are very proud of all the work and benefits of our G-Basket Products.
The gas year runs from 1st October to the end of September; therefore, we can now look back at the previous year and summarise the rates achieved against the market rates at the start of the year.
From the above two graphs you can see the blue line marks where prices were at the end of September 2022, thus surmising that if you entered a fixed contract at the end of Q3 22 these would have been the rates you would have contracted at. There’s also the savings made on the third-party charges which also need to be considered, but focussing just at commodity costs; the orange line shows where the commodity cost has out turned in the G-Baskets, if we were to put this into context, we have over 100GWh (100,000,000kWh) of combined gas and electricity in our main three G-Baskets, based upon the above we’ve saved our customers £22,250,770 over this last 12 months.
Another fact which is interesting, the government supported business with the Energy Bill Relief Scheme (EBRS), this provided financial support of any business paying over 21.1p/kWh for Electricity and 7.5p/kWh for gas from Oct 22 to Mar 23. As we managed to trade below these levels, none of our customers needed or qualified for this scheme. More importantly, if we compare the above to the EBRS and thus if our customers were not in the basket and on a fixed rate price, we saved the government and more importantly the taxpayer £12,939,588.
Our procurement team have secured most of Winter 23, over 40% of summer 24 and 20% of winter 24. We are now monitoring summer 25 and winter 25 closely. The market seems to have settled down from the heights of Q3&Q4 2022, but the system is still quite tight, and any extremity will have a significant effect. This has driven more of a cautionary approach, to try and buy at low points, but also mitigate the risk of being too over exposed to the market movements.
As always, if you have any questions, please don’t hesitate to contact us on 02476308830 or email info@getsolutions.co.uk