It is both distressing and shocking to see just how many schools have been confronted with huge energy cost increases as their energy contracts come to an end this September of October. Distressing because these increases were entirely predictable, shocking because the increase was also completely avoidable if only schools took a little more time to understand how the energy market works. Put bluntly, energy contracts are able to future proof your costs and increases should never come as a nasty surprise.
This is because energy is a “future commodity trade”, which means we are able to obtain fixed price contract offers for contracts starting months and even years in advance. In simple terms, it was inevitable that energy prices would rise from their all-time low during lockdown, and so we cannot be surprised if they have shot up now, fuelled by consumption increases across the Globe and suppliers seeking to recover their losses. The “smart money” placed contracts last year, and certainly no later than June this year.
So if your energy broker did not hammer on your door during this period, and you are now faced with huge cost increases, you need to change broker and upgrade.