What is a Basket and why should you be in it?
A Basket is where an energy consultant will bulk together a portion of their portfolio and send the supplies out to market as one large tender to increase the purchasing power of the group. Essentially it is purchasing energy in bulk to obtain a discount, an opportunity which may not otherwise be available to most businesses.
Freedom of choice
It’s important to note that this doesn’t mean that you are forced to accept the same deal as everybody else. You still have complete freedom to opt for a 1-3 year contract on elec or a 1-5 year option on gas.
We are now also offering the option of both fixed and flex contracts, both of which have their differing advantages:
Fixed Purchasing – A fixed contract is our standard option. You agree a price which does not change for your chosen contract period. This gives you peace of mind as you know exactly what you will pay and for how long. Your finance department will thank you for making their budgeting that much easier and you are protected from market changes for the duration of the contract.
Flex Purchasing – The cost of your energy is made up of the wholesale cost of energy and non-commodity costs (NCCs) which include transportation, distribution fees and capacity charges, among others. A flex contract allows you to fix the cost of NCCs but the wholesale cost will fluctuate with the market. On the plus side if the market falls your price will follow, but on the downside it can be harder to budget with the price of energy changing throughout the contract.
What are the advantages of being a part of the Basket?
Three words – Economies. Of. Scale.
The more business we group together, the more desirable the offer to prospective suppliers and as such the higher the demand to win the business. Suppliers will therefore bring out their absolute best offers in an attempt to beat their competitors.
Let’s look at the facts:
- Ofgem advised that procuring larger volumes has a noticeable effect on prices offered by suppliers. This was published in “The Retail Market Review from Oct 2012” (Figure 2.3, page 21).
- To date the MAXIMeyes basket has represented a value in excess of £15 Million and a total consumption of over 227,000,000 kWh.
Failure to prepare, prepare to fail.
MAXIMeyes are now preparing for the 2018 Basket tender. Why so early? Because although the wholesale energy market is steady, prices are rising due to an increase in non-commodity costs. This is an ongoing pattern across the industry and you have probably seen suppliers in the news as they announce price hikes. If you can’t prevent something from happening the best thing to do is be ready for it!
Don’t miss out on potential savings.
For the majority of businesses, over the years we have found that being part of the Basket can result in our clients obtaining cost reductions of up to 10% compared to tendering their supplies separately. You will experience the same high level of service from MAXIMeyes throughout the Basket process and throughout the duration of your Basket-arranged contract.
Not already a client?
Get in touch with our team today for a no obligation review of your energy supplies. We have over 20 suppliers on our books and as such can ensure that you are getting the most competitive deal for your supplies. With award winning service to boot – it’s a no brainer!
Kieron Blundell, MAXIMeyes